Power Finance Corporation and REC Limited Merger Proposal for Improved Efficiency in Public Sector NBFCs

Power Finance Corporation Ltd (PFC) and REC Limited (REC) have proposed a merger in line with the Government of India’s approval to achieve scale and improve efficiency among Public Sector NBFCs. The merger is expected to benefit from improved balance sheet strength, capital efficiencies, and operational synergies, enabling large-scale funding and improved credit flow across the power sector. The merged entity would be positioned as the largest power sector financer in India. The merger will maintain the Government company status, and the Government of India will continue to retain its control of the merged entity. The merger structure is under deliberation with appropriate external agencies appointed for structured, timely, and compliant execution.