New Delhi, Feb 07: The Boards of Directors of REC Limited and Power Finance Corporation Limited (PFC) have granted in-principle approval for a merger aimed at enhancing scale and efficiency in the non-banking financial sector, as outlined in the Union Budget 2026–27.
The Finance Minister emphasized this vision during her Budget speech, highlighting goals for credit disbursement and technology integration.
On February 6, 2026, the boards acknowledged that the restructuring would include developing a detailed merger scheme compliant with legal and regulatory frameworks, which will subsequently be presented to relevant authorities for approval.
Both REC and PFC have confirmed that the merged entity will retain its classification as a “Government Company” under the Companies Act, 2013. Additional information regarding the merger’s structure, integration roadmap, and implementation timeline will be provided after the approval process is completed.
Notably, PFC currently possesses a 52.63% majority stake in REC, following its acquisition of the Indian government’s shareholding in REC in 2019.
