Cabinet gives ‘In Principle’ approval of equity sale of REC to PFC
The government of India has given ‘In Principle’ approval for strategic sale of its existing 52.63% of total paid up equity shareholding in Rural Electrification Corporation to Power Finance Corporation along with transfer of management control.
The acquisition intends to achieve integration across the Power Chain, obtain better synergies, create economies of scale and have enhanced capability to support energy access and energy efficiency by improved capability to finance power sector. It may also allow for cheaper fund raising with increase in bargaining power for the combined entity.
Both REC and PFC are Central Public Sector Enterprises under the Ministry of Power.
@EPC World Media