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The proposed merger of Maharatna central public sector enterprises (CPSEs) REC Ltd and Power Finance Corporation (PFC) is underway and is expected to support large-scale funding and credit flow across the power sector, said REC Chairman and Managing Director Jitendra Srivastava.
As per a press release, addressing shareholders at the 57th Annual General Meeting, Srivastava said the merger, will create benefits through enhanced balance sheet strength. He said "the merger is under progress and is expected to create benefits through enhanced balance-sheet strength, capital efficiencies and operational synergies, supporting large-scale funding and improved credit flow across the power sector value chain." He highlighted REC's growing focus on renewable energy, noting that the company sanctioned 58 renewable energy projects with an aggregate capacity of over 13,000 MW in FY2025-26, involving loan assistance of more than Rs 85,000 crore. The release further noted, REC posted its highest-ever annual disbursements of Rs 2.11 lakh crore during FY2025-26, while sanctions reached a record Rs 4.09 lakh crore. Its net worth crossed Rs 84,000 crore, up around 9 per cent year-on-year, while gross loan assets stood at Rs 5.84 lakh crore as of March 31, 2026. The company reported a net profit of Rs 16,282 crore and total income of Rs 59,187 crore during the year. Also, the company's renewable energy loan assets crossed Rs 75,000 crore, registering around 30 per cent year-on-year growth. "The Company-financed projects have cumulatively contributed to avoiding approximately 7.6 million tonnes of CO emissions," REC said in the release. In June, the boards of both state-owned companies approved a merger-by-absorption scheme under Sections 230 to 232 of the Companies Act, 2013, with REC set to merge into PFC as the transferee company. Under the approved scheme, REC will be dissolved without winding up once the merger takes effect, while eligible REC shareholders will receive 88 PFC equity shares for every 100 REC shares held on the record date. The merger will come into effect from the appointed date specified in the scheme. In a joint statement, the companies said the proposed transaction would create "a financing entity with an aggregate loan book of over Rs 11 lakh crore." (ANI)
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