Power Finance Corporation (PFC) has addressed recent news regarding a potential merger with Rural Electrification Corporation (REC). PFC clarifies that it acquired a 52.63% stake in REC in March 2019, making REC a subsidiary. The company acknowledges the Finance Minister’s announcement about restructuring PFC and REC to improve efficiency and scale. PFC will deliberate on the announcement at a board meeting and disclose further developments to the stock exchange.
Status of REC Acquisition
Power Finance Corporation (PFC) clarifies its position regarding recent news articles discussing a potential merger with Rural Electrification Corporation (REC). On December 6, 2018, the Cabinet Committee on Economic Affairs (CCEA) approved PFC’s acquisition of a 52.63% stake in REC. This acquisition was completed in March 2019, making REC a subsidiary of PFC.
Union Budget 2026 Announcement
The company acknowledges the announcement made by the Finance Minister on February 1, 2026, during the Union Budget 2026:
“The vision for NBFCs for Viksit Bharat has been outlined with clear targets for credit disbursement and technology adoption. In order to achieve scale and improve efficiency in the Public Sector NBFCs, as a first step, it is proposed to restructure the Power Finance Corporation and Rural Electrification Corporation.”
Next Steps
PFC is considering holding a Board Meeting to discuss the implications of the Finance Minister’s announcement and determine the appropriate course of action. Any further developments will be disclosed to the stock exchange in accordance with applicable regulations.
Response to Queries
PFC stated that no negotiations or events regarding this matter were taking place.
Impact Assessment
The potential impact of the budget announcement will be evaluated during the upcoming Board meeting, and the results will be communicated to the stock exchange.
Source: BSE
