The Board of Directors of REC Limited has granted in-principle approval for a merger with Power Finance Corporation (PFC). This decision follows the announcement made in the Union Budget 2026-27 regarding the restructuring of power sector NBFCs. The proposed merger aims to achieve greater scale and improve efficiency in the public sector. The detailed merger scheme will be shared after the approvals.
Merger Approval
REC Limited’s Board of Directors has given its in-principle approval to proceed with a restructuring involving a merger with Power Finance Corporation (PFC). The decision was made during a board meeting held on February 6, 2026.
Rationale and Objectives
This strategic move aligns with the announcement made in the Union Budget 2026-27, which proposed restructuring Power Finance Corporation Limited and REC to achieve greater scale and improved efficiency within the public sector NBFC landscape. REC aims to formulate a detailed merger proposal that adheres to all applicable laws and regulations, ensuring the merged entity continues operating as a Government Company.
Next Steps
The detailed merger scheme will be shared after all the requisite approvals have been obtained. The board meeting that concluded with this decision commenced at 4:00 p.m. and ended at 5:05 p.m.
Source: BSE
