The Finance Ministry’s proposal to raise Rs 14,000 crore through the merger of Power Finance Corporation (PFC) and Rural Electrification Corporation (REP) has left the Ministry of Power worried about the financial health of the two companies in the an otherwise weak sector.
According to a report by The Economic Times, a senior government official has said that the power ministry is concerned about operational and administrative issues that may come up if the merger goes through, as these are established setups.
Another concern is that the net worth of the acquiring company may fall drastically, the official added.
The ministry is also worried that the fundamentals of both the companies may get damaged if the deal goes through. Read More