The power ministry on 19 February 2026 set up two panels to study the modalities of the proposed merger of state-run Power Finance Corporation Limited (NSEI:PFC) and its subsidiary REC Limited (NSEI:RECLTD), and oversee the restructuring process of the two financial institutions. The ministry has set up a working group with one executive director each from the two companies and the director (distribution) in the ministry to study the modalities of the merger. The other is a high-level committee to oversee the merger, with the chairpersons of PFC and REC as members, and the ministry's joint secretary (distribution) as convenor.
The ministry conveyed the decision to the concerned officials and the chairman and managing directors of the companies through two separate office orders that were reviewed by Mint. An office order said the working group will study and make proposals on personnel integration, including harmonization of pay, promotion matters and inter-se seniority, corporate and functional restructuring of organization with restructuring of reporting structure and supervision of technology integration. It will also look into harmonizing stakeholder interests, resolving inter-entity issues, monitoring progress on approval of regulatory authorities among other relevant matters for the merger.
The group will meet at least once a week and present its recommendations to the high-level committee on the merger. The spokespesons at the power ministry, PFC and REC did not immediately respond to queries mailed on 19 February 2026.
