PFC buys government stake in REC
New Delhi. The Board of Directors of Power Finance Corporation (PFC) has approved the merger with Rural Electrification Corporation Limited (REC). PFC said it has acquired the government's 52.63% stake in REC. "Following 'in-principle' approval from the Cabinet Committee on Economic Affairs (CCEA), PFC has acquired the government's 52.63% stake in REC. Accordingly, PFC and REC are operating as holding and subsidiary companies," PFC said in a stock exchange filing. In this, PFC will work as holding and REC subsidiary company.
Finance Minister had announced in the budget
In Budget 2026, Finance Minister Nirmala Sitharaman had said that the vision of NBFCs for a developed India is spelled out with clear targets for credit distribution and technology adoption. To achieve scale and improve efficiency in public sector NBFCs, as a first step, it is proposed to restructure the Power Finance Corporation and the Rural Electrification Corporation.
REC has expanded its business a lot
PFC is a public company under the Ministry of Power and is a leading non-banking financial corporation in the country. REC has developed and expanded its financing mandate to cover the entire power-infrastructure sector, including generation, transmission, distribution, renewable energy and new technologies like electric vehicles, battery storage, green hydrogen. Recently, REC has also entered the non-power infrastructure sector, which includes roads and highways, metro rail, airports, ports, IT communications, etc.
India needs 450 billion dollars
According to Power Secretary Pankaj Aggarwal, India will need $450 billion to build new power plants, transmission lines and energy storage systems over the next seven years to rapidly electrify its economy. He said the country's per capita electricity consumption, which is currently one-third of the global average, is expected to triple by 2047, which coincides with the government's goal of achieving developed country status by that time.
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