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Government nods sale of its 53% stake in REC to Power Finance Corp

IANS  |  New Delhi 

The (CCEA) on Thursday accorded in-principle approval for the strategic sale of the governments existing 52.63 per cent majority shareholding in the Corporation (REC) to the state-run (PFC), along with transfer of management control.

A CCEA communique following the cabinet meeting said this sale of the government's equity holding in to PFC is designed to achieve integration across the power chain, obtain better synergies and have improved capability to finance the power sector.

"It may also allow for cheaper fund raising with increase in bargaining power for the combined entity," it said.

Briefing reporters here on the cabinet decisions, said that both entities will continue to remain separate companies, while the "shareholding of one company will control that of the other".

Both PFC and are central public eector enterprises under the

--IANS

bc/nir

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, December 06 2018. 22:06 IST
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