Power Finance Corporation announced it received Presidential approval for the merger of REC Limited into PFC. This clears a major regulatory hurdle for the consolidation of the two state-owned financial institutions.

Power Finance Corporation gets Presidential Approval for REC Limited Merger

Power Finance Corporation Ltd. (PFC) has received the Presidential approval for the proposed merger of REC Limited into PFC. The approval was communicated via a letter dated June 10, 2026, from the Ministry of Power, acting on behalf of the President of India.

This development follows a resolution passed by PFC's Board on May 16, 2026, where the merger proposal was specifically reserved for the approval of the Hon'ble President of India. The receipt of this formal approval signifies the completion of a mandatory regulatory requirement for the merger.

What just happened

PFC has secured the final regulatory clearance from the President of India for its merger with REC Limited.

Why this matters

This approval removes a major governmental hurdle, paving the way for the consolidation of two significant state-owned financial entities and bringing clarity to the merger's progression.

The backstory

State-owned Power Finance Corporation had announced its intention to merge with its subsidiary, REC Limited, in a move aimed at creating a larger, more robust financial institution. The merger plan required approval from the highest levels of government, including the President of India.

What changes now

With the Presidential approval in hand, PFC can now proceed with the subsequent steps required for the amalgamation, including procedural requirements and final implementation.

Risks to watch

While a major hurdle is cleared, investors should monitor the successful completion of procedural formalities and the integration process.

Peer comparison

PFC and REC operate in the power sector financing space, a segment that has seen consolidation efforts aimed at strengthening the financial backbone of public sector undertakings.

Context metrics (time-bound)

• Presidential Approval Letter Date: June 10, 2026
• PFC Board Resolution Date: May 16, 2026

What to track next

Investors should watch for updates on the scheme of amalgamation's implementation timeline, any further procedural disclosures, and the combined entity's strategic direction post-merger.