REC has secured the approval from the Ministry of Power to merge with Power Finance Corporation (PFC). This marks a significant step in the consolidation of the two state-owned power sector financiers.
In a regulatory filing the company said, “The Ministry of Power, vide its letter dated June 10, 2026, has conveyed the approval of the Competent Authority in respect of the aforesaid proposal.”
Earlier on May 16, the company informed exchanges that its Board of Directors had authorised the company’s Chairman and Managing Director (CMD) to seek approval from the President of India for the proposed merger under Sections 230-232 of the Companies Act, 2013.
The company had stated that the share exchange ratio for the merger would be determined by independent valuers appointed for the transaction.
REC to be dissolved after merger
Upon completion of the merger process, all assets and liabilities of REC will be transferred to PFC. REC will cease to exist as a separate legal entity and will stand dissolved in accordance with the provisions of the Companies Act.
The merged entity will continue to retain its status as a government company, REC had said in its earlier filing.
The merger proposal was first announced in the Union Budget 2026-27 and subsequently received in-principle approval from the board of Power Finance Corporation in February 2026.
About REC
REC is a Maharatna CPSE under the Ministry of Power. It is one of India’s leading infrastructure financing NBFCs with a loan book of Rs 5.82 lakh crore as of December 31, 2025. Established in 1969 to support rural electrification, REC has expanded its financing portfolio across the entire power value chain, including renewable energy and emerging technologies, while also diversifying into non-power infrastructure such as roads, metro rail, airports and telecom.
REC plays a pivotal role in implementing key government initiatives, including the Revamped Distribution Sector Scheme (RDSS) and PM Surya Ghar Free Bijli Yojana, while maintaining the highest domestic credit ratings and sovereign-equivalent international ratings.
REC share price
The share price of REC has declined 1.09% in the morning trade on Thursday. The stock has declined 6.27% so far this year.
About Power Finance Corporation (PFC)
Power Finance Corporation (PFC), a Maharatna CPSE under the Ministry of Power and an Infrastructure Finance Company classified by the RBI, is India’s largest NBFC by net worth and a leading financier to the power sector.
With a market share of around 20%, PFC provides financial assistance and advisory services across the power value chain while maintaining strong asset quality, low NPAs and consistent profitability.
PFC share price
The share price of Power Finance Corporation has declined 2.67% in the morning trade on Thursday. The stock has gained 15.49% so far this year.