Centre's disinvestment plan to get a boost if REC-PFC merger happens

Senior power ministry officials, Dipam officials, and representatives from REC and PFC met Finance Minister Arun Jaitley last week, to discuss the merger proposals

The next big takeover of a government company by another is likely to get a bigger boost for the Centre’s disinvestment proceeds if Power Finance Corporation (PFC) is taken over by Rural Electrification Corporation (REC).

The power ministry, however, believes that PFC acquiring the government’s 58 per cent stake in REC makes more financial sense for both the companies. 

The Department of Investment and Public Asset Management (Dipam) is in favour of REC buying the Centre’s 65.6 per cent stake in PFC. The Centre’s stake in PFC is valued at nearly Rs 160 billion, while its stake in REC is