The merger of REC Ltd with Power Finance Corporation (PFC) has been officially approved by the President of India. This decision comes nearly seven years after PFC acquired a majority stake in REC, which was completed in March 2019 for ₹14,500 crore.
According to a regulatory filing by REC, the Ministry of Power communicated the approval via a letter dated June 10, 2026. This letter confirmed the Competent Authority's endorsement of the merger proposal.
During a Board of Directors meeting on May 16, the proposal to merge REC into PFC was reserved for approval following the President's consent.
Once the merger is finalized under applicable laws, all assets and liabilities of REC will be transferred to PFC, leading to the dissolution of REC in accordance with Sections 230-232 of the Companies Act 2013.
Finance Minister Nirmala Sitharaman highlighted the merger in her recent budget speech, emphasizing its potential to enhance scale and efficiency within Public Sector Non-Banking Financial Companies (NBFCs).
This merger represents a strategic move to streamline operations and improve performance in the public sector finance landscape.
