Power Finance Corporation Limited has received Presidential approval for the proposed merger of REC Limited into PFC. The Ministry of Power conveyed the President's approval through a letter dated June 10, 2026. PFC disclosed this development in a regulatory filing to the National Stock Exchange and BSE Limited.
PFC had initially reserved the merger proposal for Presidential sanction following a Board of Directors decision on May 16, 2026. PFC had informed the exchanges that the amalgamation was being referred for the approval of the President of India.
PFC and REC Limited are public sector power sector financiers under the administrative control of the Ministry of Power. PFC is registered as a systemically important non-banking finance company and infrastructure finance company. REC Limited primarily focuses on financing rural electrification and power generation, transmission, and distribution projects nationwide.
The proposed consolidation of REC Limited into PFC will create a combined lending entity with significant scale in the power finance sector. PFC and REC together have financed thousands of power projects across generation, transmission, and distribution segments. The merger will consolidate the government's holdings in power sector financial institutions into a single entity under the Ministry of Power. The combined portfolio will span the entire power value chain from generation and transmission to distribution and rural electrification.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.