New Delhi: State run Power Finance Corporation (PFC) and Rural Electrification Corporation Ltd (REC) have reduced lending rates by 2 percentage points for the next financial year.
The development effective 1 April assumes significance given that PFC and REC are the largest lenders to the Indian power sector space. They are also group companies post PFC bought a controlling stake in the state-run peer REC Ltd in 2019.
“PFC and REC as group companies have been aligning operations to realise synergies. As a part of such effort, PFC and REC have now decided together to reduce lending rates upto 2%. This initiative was undertaken to offer competitive rates, in line with the rates being offered by peers in the market. This will also help PFC and REC to continue their business growth going forward in addition to maintaining reasonable spreads,” PFC said in a statement on Wednesday.
