No road map for PFC-REC merger yet: Govt officials

New Delhi: Even a year after Power Finance Corporation acquired REC for Rs 14,500 crore, the government has no road map on the merger of the two state-run firms that operate in the same space, top officials familiar with the matter said. The two infrastructure finance companies dedicated to power sector are likely to continue operations as separate entities at least in the near term, mainly due to apprehensions that their consolidation may lead to financing issues in an already troubled power sector, they said.

PFCNSE -2.47 % had completed the acquisition of REC in March last year. But the parent firm does not have management control of REC even though its director – commercial PK Singh is on the board of the subsidiary firm. This defies the logic of the divestment