PFC may buy govt stake in REC for Rs 15,000 cr

PFC may buy govt stake in REC for Rs 15,000 cr

The Union Cabinet may consider a proposal on Thursday for sale of the Centre’s 52.63% stake in Rural Electrification Corporation (REC) to Power Finance Corporation (PFC) for about Rs 15,000 crore, at a hefty premium of 36% over the current market price.

Though, the earlier plan was to sell government stake in REC to PFC, it has been reversed as the power ministry flagged some concerns.

Revenue from sale of government stake in companies in FY19 may be within the striking distance of the annual target of Rs 80,000 crore if the proposed REC stake sale is concluded before March 31.

So far this year, the Centre has garnered about Rs 32,300 crore in disinvestment receipts, including Rs 17,500 crore via CPSE ETF which concluded on Friday. Read More

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