Power Finance Corporation Ltd. (PFC) announced that its Board of Directors, in a meeting held on February 6, 2026, approved the merger of PFC and REC Limited. This decision follows the 'In Principle' approval from the Cabinet Committee on Economic Affairs (CCEA) for PFC's acquisition of 52.63% of the Government's holding in REC, making them holding and subsidiary companies. The Board also noted the announcement made in the Union Budget 2026-27 speech, which outlined a vision for NBFCs and proposed the restructuring of PFC and REC to achieve scale and improve efficiency. The merger is intended to create a merged entity that will continue to operate as a 'Government Company' under the Companies Act, 2013. A detailed merger scheme will be shared upon receiving requisite approvals. The Board meeting commenced at 2:30 p.m. and concluded at 3:45 p.m. on February 6, 2026.
