REC Limited has officially announced that its Board of Directors has approved the proposal to merge the company into Power Finance Corporation Limited (PFC). This strategic consolidation, set to be executed under sections 230-232 of the Companies Act, 2013, aims to integrate operations while maintaining the merged entity’s status as a ‘Government Company’. The merger is subject to final approvals from the President of India and other relevant authorities.
Strategic Merger Announcement
In a significant move for the power sector, the Board of Directors of REC Limited met on May 16, 2026, and formally reserved the proposal for the merger of REC into Power Finance Corporation Limited (PFC). This consolidation is designed to streamline operations and leverage synergies between the two power sector giants. The Board has authorized the Chairman and Managing Director of REC to initiate the formal application process with the Hon’ble President of India.
Merger Details and Process
The transaction will proceed in accordance with the Companies Act, 2013. A crucial component of the merger includes the determination of a share exchange ratio, which will be finalized by appointed valuers to ensure transparency. A core condition of this integration is that the resulting entity must retain its status as a ‘Government Company’ throughout and after the transition. Upon completion of the legal requirements and receipt of necessary approvals, REC will transfer all assets and liabilities to PFC and will effectively stand dissolved.
Leadership Appointment
Alongside the merger announcement, the company has strengthened its corporate governance structure. The Board has approved the appointment of Mr. Mohammed Azaz Ali as the new Chief Compliance Officer. Mr. Ali, who serves as the General Manager (Finance), will assume the role on May 17, 2026, and will serve until his superannuation on June 30, 2028. He brings a strong background in both Electronics Engineering and Business Administration (Finance) to the compliance function.
Source: BSE
