REC deal makes PFC $80 billion lending behemoth
- PFC pays ?14,500 to the govt to buy a 52.63% stake in REC, in the process helping meet disinvestment and fiscal deficit targets
- The PFC-REC merger deal, to be completed by next year, can potentially help in faster resolution of power sector NPAs
State-owned Power Finance Corporation (PFC) on Thursday will make the entire payment of ?14,500 crore to the government for acquiring 52.63% stake in REC, a source said.
The deal would help the government meet its disinvestment target of ?80,000 crore for the current financial year ending on 31 March.
“The entire consideration of ?14,500 crore for acquiring 52.63 per cent equity of Government of India will be paid by the PFC through RTGS (real-time gross settlement) mode on March 28, 2019,” the source privy to the development told PTI.
The source said PFC Chairman and Managing Director Rajeev Sharma will hand over the RTGS advice to Power Minister R K Singh on Thursday to mark the conclusion of this acquisition deal and the money would be transferred to the government’s account.
PFC has raised money from Bank of Baroda, Life Insurance Corporation and State Bank of India, among others, to make the payment, the source added.