Joint Venture6 Feb 2026, 05:21 pm
REC Ltd Board Approves In-Principle Merger with PFC Following Union Budget 2026-27 Announcement
AI Summary
The Board of Directors of REC Limited has accorded its in-principle approval to proceed with a merger with Power Finance Corporation Limited (PFC). This decision comes in line with the proposal made by the Hon’ble Finance Minister in the Union Budget 2026-27 to restructure public sector NBFCs for improved efficiency. The merger proposal will be formulated in accordance with applicable laws and regulations, ensuring that the merged entity remains a 'Government Company' under the Companies Act, 2013. The detailed merger scheme will be shared after requisite approvals.
Key Highlights
- REC and PFC merger approved in-principle by REC's Board of Directors.
- Proposal based on Union Budget 2026-27 announcement for restructuring public sector NBFCs.
- Merger to ensure the merged entity remains a 'Government Company' under the Companies Act, 2013.
- Detailed merger proposal to be formulated in accordance with applicable laws and regulations.
- Detailed merger scheme to be shared after requisite approvals.