Business Standard
The government is looking at options, including issuance of preference shares or fresh equity, to maintain 51 per cent stake in the state-owned Power Finance Corporation post its merger with REC, a senior official said. Finance Minister Nirmala Sitharaman had in FY27 Budget announced restructuring of Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) to help achieve scale and improve efficiency in the public sector NBFC space. "The government would like to retain a majority stake in the merged entity as it would be the largest government-owned NBFC with strategic presence. Discussions are going on over the options to ensure that government stake in the merged entity does not fall below 51 per cent," the official said. As per Companies Act, a 'government company' is one in which not less than 51 per cent of the paid-up share capital is held by the central government, or by any state government, and includes a company that is a subsidiary company of such a ...
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