The power ministry is considering a proposal under which state-run REC Ltd will buy entire 65.6 per cent government stake in Power Finance Corporation (PFC) for around Rs 16,000 crore at present market value, a move would ultimately help the Centre meet its divestment target, a source said.
“A proposal to sell entire government stake (65.6 per cent) in state-run PFC to REC Ltd is under consideration of the power ministry. After the divestment, the REC would take over the PFC and both firms would be merged as one entity i.e REC Ltd,” a source said.
The source further said, “The power ministry has firmed up the proposal after Department of Investment and Public Asset Management (DIPAM) had asked the ministry to explore possibility of merge and acquisition among state-run firms under ambit of this ministry.” Read More
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