Updated By: LatestGKGS Desk
Government of India strategic sale of Rural Electrification Corporation Details
Government of India strategic sale of Rural Electrification Corporation in Rural Electrification Corporation to Power Finance Corporation Details, Features, Updates
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi has given it approval ‘In Principle’ approval for strategic sale of the Government of India’s existing 52.63 percent of total paid-up equity shareholding in Rural Electrification Corporation (REC) to Power Finance Corporation (PFC) 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 the improved capability to finance the power sector.
The initiative may also allow for cheaper fundraising with an increase in bargaining power for the combined entity.
Both Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) are Central Public Sector Enterprises under the Ministry of Power.
