President Droupadi Murmu Approves Merger of REC Ltd with PFC

Current Context: On June 10, 2026, the Ministry of Power conveyed President Droupadi Murmu’s approval for the merger of REC Ltd into Power Finance Corporation (PFC).

• This follows PFC’s March 2025 acquisition of GoI’s 52.63% stake in REC (~₹14,500 crore), aligning with the Union Budget 2026‑27 vision to restructure NBFCs for efficiency and capital access.
• REC will merge into PFC, with a share‑swap scheme requiring regulatory, stock exchange, and shareholder approvals, while retaining Government Company status.
• The merger creates a mega power financing giant, strengthening lending for generation, transmission, distribution, renewables, and infrastructure projects.
• It aims to reduce overlaps, achieve operational synergies, improve risk management, and support India’s energy transition goals.

Question:

Q.1 On June 10, 2026, President Droupadi Murmu approved the merger of Rural Electrification Corporation Limited (REC Ltd) into which organization?
a) Power Finance Corporation Limited (PFC)
b) Power Grid Corporation of India Limited (POWERGRID)
c) National Thermal Power Corporation Limited (NTPC)
d) Indian Renewable Energy Development Agency Limited (IREDA)

Answer: a) The Government approved the merger of Rural Electrification Corporation Limited (REC Ltd) into Power Finance Corporation Limited (PFC) to create a stronger power-sector financing institution.