REC-PFC Merger Cleared: Presidential Approval Sets Stage for Power Finance Giant
REC Limited has received Presidential approval for its proposed merger into Power Finance Corporation, a landmark development that could create one of India's largest power financing entities.
State-owned REC Limited has announced that the Ministry of Power has conveyed the approval of the competent authority — the President of India — for its proposed amalgamation into Power Finance Corporation Limited (PFC). The disclosure, made to stock exchanges under SEBI regulations on June 10, 2026, marks a significant milestone in the consolidation of India's power financing sector. The development follows a May 16, 2026 decision by REC's Board of Directors to reserve the merger proposal for Presidential approval. The Ministry of Power communicated the Presidential nod through an official letter dated June 10. Both REC and PFC are among India's leading public sector non-banking financial companies, specialising in lending to power generation, transmission and distribution projects. The proposed merger is expected to create a larger and more powerful entity in the power financing ecosystem, though it remains subject to further regulatory processes and approvals before implementation. Company Secretary and Compliance Officer Dinesh Garg made the filing on behalf of REC Limited.
