Key facts
- The President of India has approved the merger of REC Ltd into Power Finance Corporation (PFC).
- The Ministry of Power conveyed the approval on June 10, 2026.
The President of India has approved the merger of REC Ltd with Power Finance Corporation (PFC). This move follows PFC's acquisition of a majority stake in REC in March 2019.
The merger is expected to create a larger entity with enhanced operational efficiency in the public sector NBFC space, potentially impacting the financial services landscape for power sector financing in India.
The President of India has officially approved the merger of REC Ltd with Power Finance Corporation (PFC), a move that aims to enhance scale and efficiency within public sector non-banking financial companies (NBFCs).
The approval was conveyed by the Ministry of Power via a letter dated June 10, 2026. This development follows PFC's acquisition of a 52.63% majority stake in REC from the government in March 2019 for Rs 14,500 crore.
REC's Board of Directors had previously reserved the proposal for the merger on May 16, pending presidential approval. Once the merger is legally effective, all assets and liabilities of REC will be transferred to PFC, and REC will cease to exist as per the provisions of the Companies Act 2013.