Cabinet okays Power Finance Corp's takeover of Rural Electrification Corp

The Centre's stake in PFC is valued at nearly Rs 160 billion, while its stake in REC is valued at Rs 120 billion

The Cabinet Committee on Economic Affairs (CCEA) on Thursday gave an in-principle approval to the strategic sale of the Centre’s 52.63 per cent holding in Rural Electrification (REC) to the Power Finance Corporation (PFC), along with transfer of management control. The government has a total 58.3 per cent stake in REC, remainder of which is part of Bharat 22 ETF and CPSE ETF. The move will help the Centre meet its disinvestment target of Rs 800 billion for FY19.

The government said the acquisition intends to achieve “integration across the power chain, obtain better synergies, create economies of scale, and