Govt divest REC stake
The government divestment in Rural Electrification Corporation (REC) to Power Finance Corporation (PFC) along with transfer of management control is expected to help raise cheaper funds.
The Cabinet Committee on Economic Affairs has given its ‘In Principle’ approval for strategic sale of the Government existing 52.63% of total paid up equity shareholding REC to PFC on 6 Dec 2018.
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 improved capability to finance power sector.
Both REC and PFC are Central Public Sector Enterprises under the Ministry of Power. fiinews.com
