PFC Limited has acquired 52.63 per cent of the Government of India’s stake in Rural Electricification Corporation (REC) Limited. This move comes as a response to the announcement made in the Union Budget 2026-27, where the restructuring of PFC and REC Limited was proposed. Furthermore, with the acquisition, REC Limited is now a subsidiary of PFC Limited.
The merger is expected to create a major lender for the power sector once completed. The two agencies provide significant lending to renewable energy projects. The restructuring aims to achieve scale and improve efficiency in the public sector non-banking financial institutions.
Earlier this month, REC Power Development and Consultancy Limited, a wholly-owned subsidiary of REC Limited, floated a tender for the development of an interstate transmission system to enable the evacuation of 6 GW of solar power from the Barmer-II pooling substation in Rajasthan.
Furthermore, earlier in April 2025, REC Limited successfully raised Rs 50 billion through bond issuance.
