Restructuring Power Finance Corporation and Rural Electrification Corporation: A Leap Towards Efficient Public Sector NBFCs

The proposed merger of PFC and REC seeks to strengthen India’s power sector financing by enhancing lending capacity and operational efficiency. This strategic move aligns with India’s infrastructure goals and renewable energy expansion, contingent on regulatory compliance. The merger could significantly bolster India’s energy ecosystem if executed without political or operational challenges.

The article was authored by Vishnu Sudarsan, Partner, Samrat Chakraborty, Associate, and Sahil Arora, Associate, and was published in Energetica India.

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