The Power Finance Corporation is likely to dip into its finances and buy out the government’s stake in Rural Electrification Corporation at a premium. This will bail out the Centre in meeting the divestment target of Rs 80,000 crore for the current fiscal.
The board of PFC is slated to meet next week to decide on the strategic buyout of a 52.63 per cent government stake in REC at a premium.
Officials have indicated that the government could insist on a 20 per cent premium, which could fetch Rs 12,000-Rs 15,000 crore to the exchequer.
Data showed that PFC at the end of the last fiscal had reserves and surplus of Rs 37,220.59 crore.