The REC–PFC merger aims to build a stronger public sector lending institution, improve financing efficiency, and accelerate investments in India’s power and infrastructure sectors.

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• President Droupadi Murmu approved the merger of REC Limited with Power Finance Corporation, creating a larger and more capable institution for financing energy and infrastructure projects.
• The merger follows PFC’s purchase of the Government of India’s 52.63% stake in REC during 2019 for ₹14,500 crore, consolidating both organisations.
• After completion, all assets, liabilities, contracts, and obligations of REC will transfer to PFC, and REC will cease to exist as a separate entity.
• The unified organisation is expected to improve operational efficiency, reduce overlapping functions, and strengthen financial support for major electricity and infrastructure initiatives.
• The consolidation aligns with the government’s broader strategy of enhancing the effectiveness and scale of public sector financial institutions serving critical sectors.
• A stronger balance sheet and expanded lending capacity could help finance renewable energy, transmission networks, distribution upgrades, and future power infrastructure projects.
• Power Finance Corporation, established on 16 July 1986, is a Maharatna public sector enterprise operating under the Ministry of Power and focuses on infrastructure financing.
• The merger is expected to support India’s long-term energy transition goals while enabling greater investment in modern power systems and sustainable economic development.