PFC-REC merger stuck, Centre reaching out to PSUs to pick up stake

One major obstacle is that the direct stake of the Centre will fall below 51% after the merger

The merger of India’s two leading non-banking financial companies (NBFCs) in the power sector is yet to conclude even after a year of Power Finance Corporation (PFC) taking over the central government’s stake in Rural Electrification Corporation (REC). At the same time, several global lenders to PFC and REC have raised an alarm over the delay and the structure of the company after the merger.

PFC in March last year acquired the Central government’s 52.63 per cent paid-up share capital, along with managerial control, in REC. 

PFC Chairman and Managing Director Rajiv Sharma had then said the company was “hopeful