PFC Acquires 52.63 Percent Government Stake in REC
Power Finance Corporation has acquired 52.63 percent of the Government’s stake in REC, making it a subsidiary, and has granted in-principle approval for a merger in line with the Union Budget 2026–27 restructuring plan.
February 07, 2026. By Mrinmoy Dey
The Board of Directors at PFC also took note of the Union Budget 2026–27 announcement made by the Finance Minister on February 1, 2026, which outlined the government’s vision to restructure public sector NBFCs to enhance scale, efficiency, and credit delivery. As part of this initiative, the restructuring of PFC and REC was proposed, the company said in a regulatory filing.
In line with the budget announcement, the PFC Board has accorded in-principle approval for the merger of PFC and REC. The proposed merger will ensure that the combined entity continues to function as a “Government Company” under the Companies Act, 2013 and other applicable laws, it said.
The move is aimed at strengthening operational efficiency, improving financial capacity, and supporting India’s long-term power and infrastructure financing objectives under the vision of Viksit Bharat.
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