PFC Takes Another Step Towards REC Merger

Power Finance Corporation (

) has moved a step closer towards the proposed merger of REC Limited () after both companies’ boards approved sending the merger proposal for Presidential approval. The proposed consolidation, first announced after the Union Budget 2026, aims to create a stronger and larger government-backed power financing institution with a combined loan book of over ₹11.5 lakh crore. Currently, PFC already holds around 52.63% stake in REC, and the merger is expected to improve operational efficiency, strengthen balance sheet capacity, enhance capital efficiency, and support large-scale funding for India’s power and renewable energy sectors. Reports indicate that the merger process could be completed by April 2027, subject to multiple regulatory approvals, valuation exercises, and government clearances. The development is being closely tracked by investors as it could reshape the landscape of power sector financing in India. Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.