In a surprise reversal from its earlier stance, the government now wants Power Finance Corporation (PFC) to acquire REC (erstwhile Rural Electrification Corporation) for Rs 14,000 crore, reports The Economic Times. Earlier, the government wanted REC to take over PFC.
The move would require Cabinet approval and may be considered as early as December 5, sources told the newspaper. The proposal is similar to Oil & Natural Gas Corporation’s (ONGC) acquisition of Hindustan Petroleum Corporation (HPCL) last fiscal.
This assumes importance as the Centre’s fiscal deficit has exceeded its FY19 budget estimate of Rs 6.24 lakh crore (or 3.3 percent of GDP) at the end of October on muted tax revenues and lower-than-targeted disinvestment proceeds.
So far this fiscal, the government has been able to mobilise only Rs 32,247 crore of its Rs 80,000 crore disinvestment target. Read More
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