State-owned REC will have to obtain consent of at least 50 per cent of the foreign lenders before the company could be acquired by PFC as part of the disinvestment plans approved by the Cabinet. REC’s cumulative foreign debt stands at around USD 1.85 billion which will mature in phases till 2028 and the state-owned company has initiated the exercise of obtaining the consent of these lenders.
In order to push disinvestment, the Cabinet in December approved the sale of the government’s 52.63 per cent stake in REC Ltd to Power Finance Corporation (PFC). The deal, which is to be completed by March, is expected to fetch Rs 15,000 crore to the exchequer. However, sources said that before the deal could get through, REC would be required to obtain clearance from the lenders.
