Power Finance Corporation (PFC) has acquired 52.63% of Government of India’s holding in REC. Subsequently, the REC has become subsidiary of the company. Further, the board of directors of the company has accorded its in-principle approval for restructuring in the form of a merger of the company and REC, while ensuring that, the merged entity continues to remain as a ‘Government Company’. The acquisition follows the Union Budget 2026-27 vision for NBFCs for Viksit Bharat, focusing on credit disbursement and technology adoption. 

Recently on February 1, the Finance Minister, while announcing the Union Budget 2026-27, said that in order to achieve scale and improve efficiency in the Public Sector NBFCs, as a first step, it is proposed to restructure the Power Finance Corporation and Rural Electrification Corporation.

Power Finance Corporation is engaged in providing financial assistance to Power Utilities for meeting financing and development requirements of the power sector.