REC Limited has received Presidential Approval for the proposed merger of REC into Power Finance Corporation Limited (PFC).
The Ministry of Power, vide its letter dated June 10, 2026, conveyed the approval of the Competent Authority for the merger proposal. REC had earlier informed the stock exchanges on May 16, 2026, that its Board of Directors had decided to reserve the merger proposal for the approval of the President of India.
Both REC and PFC are central public sector enterprises under the administrative control of the Ministry of Power, Government of India. REC is a Maharatna company registered as a non-banking finance company with the Reserve Bank of India, primarily engaged in financing power generation, transmission, and distribution projects across the country.
PFC is the largest non-banking finance company in India's power sector and, along with REC, constitutes the principal lending channel for power infrastructure development in the country. The amalgamation of the two entities is expected to create a combined power sector financier with an expanded balance sheet and broader lending capacity for large-scale power projects.
REC's board approved the proposal to reserve the merger for Presidential consideration at its meeting held on May 16, 2026. The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. REC will inform the exchanges of subsequent developments in the merger process as they occur.
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.