President clears REC–PFC merger, paving way for single power financier

The President has approved the merger of REC Ltd with Power Finance Corporation, nearly seven years after PFC acquired the government's majority stake in REC. In March 2029, state-owned PFC completed the acquisition of the government's majority stake of 52.63 per cent in REC Ltd for Rs 14,500 crore. According to a regulatory filing by the REC, the Ministry of Power, vide its letter dated June 10, 2026, has conveyed the approval of the Competent Authority (President of India) in respect of the aforesaid proposal (merger of REC into PFC). On May 16, the Board of Directors at its meeting reserved the proposal for the merger of REC into PFC in view of approval of the proposal by the President of India. Upon the merger being duly approved under the applicable law and being made effective, all the assets and liabilities of the REC will be transferred to PFC, and REC will stand dissolved in accordance with the provisions of Sections 230-232 of the Companies Act 2013, REC had said. Finance Minister Nirmala Sitharaman, in her budget speech this year, had talked about the merger of REC and PFC. In order to achieve scale and improve efficiency in the Public Sector NBFCs, she had said, as a first step, it is proposed to restructure the Power Finance Corporation and REC (erstwhile Rural Electrification Corporation).