{"id":331818,"date":"2020-01-31T12:35:52","date_gmt":"2020-01-31T07:05:52","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=331818"},"modified":"2020-01-31T12:35:52","modified_gmt":"2020-01-31T07:05:52","slug":"merger-of-rec-with-pfc-hits-roadblock","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/merger-of-rec-with-pfc-hits-roadblock\/","title":{"rendered":"Merger of REC with PFC hits roadblock"},"content":{"rendered":"<p>The proposed merger of REC with state-owned shadow banking firm Power Finance Corporation (PFC) has hit a roadblock and is not likely to happen in near future as it would violate RBI norms on the exposure of non-banking financial companies (NBFCs), according to sources.<\/p>\n<p>As per the RBI norms, debt exposure of an NBFC in a project cannot exceed 25%. The exposure of Power Finance Corporation (PFC) and REC as a merged entity would exceed the limit of 25% in any existing project as the two firms have been financing power sector projects.<\/p>\n<p>After the merger, the new entity will be required to reduce its exposure in a project to 25% which may not be feasible.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The proposed merger of REC with state-owned shadow banking firm Power Finance Corporation (PFC) has hit a roadblock and is not likely to happen in near future as it would violate RBI norms on the exposure of non-banking financial companies (NBFCs), according to sources. As per the RBI norms, debt exposure of an NBFC in a project cannot exceed 25%. The exposure of Power Finance Corporation (PFC) and REC as a merged entity would exceed the limit of 25% in any existing project as the two firms have been financing power sector projects. After the merger, the new entity will [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,247,150],"tags":[],"class_list":["post-331818","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-power-the-tribune","category-the-tribune"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/331818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=331818"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/331818\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=331818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=331818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=331818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}