REC Limited has received Presidential approval for the proposed merger of the company into Power Finance Corporation, marking a pivotal milestone in the consolidation of two of India's largest state-owned power sector lenders. The Ministry of Power conveyed this decision through a letter dated June 10, 2026, formally confirming the requisite consent for the merger to proceed. This strategic consolidation aims to streamline the power sector financing landscape by combining the assets and capabilities of the two major lenders.

Background and Approval Process

The approval follows a decision by the Board of Directors of REC Limited to reserve the merger proposal for the President's consideration, as communicated in an earlier intimation dated May 16, 2026. The Ministry of Power's subsequent communication confirms that Presidential consent has now been granted, clearing a critical regulatory hurdle in the consolidation process.

The following table outlines the key timeline for the merger approval process:

Strategic Significance

The merger of REC Limited into Power Finance Corporation aims to consolidate the operations of both government undertakings, strengthening the overall capacity of state-owned financing in India's power sector. Dinesh Garg, Company Secretary & Compliance Officer of REC Limited, signed the disclosure on June 10, 2026.

Shri V. Packirisamy has assumed charge as Director (Commercial) on the Board of Power Finance Corporation effective June 2, 2026. The appointment was made pursuant to an order from the Ministry of Power, Government of India, under the Articles of Association of the company. He will serve in this capacity until the date of his superannuation or until further orders, whichever is earlier.

The Ministry of Power, through its order No. F.No.24-8/1/2021-PFC (MoP) dated June 2, 2026, informed the company of the appointment. The disclosure was made to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015.

Packirisamy brings over 33 years of rich and diverse professional experience to the role. He has been associated with Power Finance Corporation since January 1997. He holds a Bachelor's degree in Mechanical Engineering from Sastra University and an M.Tech in Management Systems from IIT Delhi.

Throughout his tenure, he has worked across multiple domains including credit appraisal, rating of power utilities, power sector reforms and restructuring, and financial analysis of borrowers. He has played a key role in the preparation of Operational & Financial Action Plans (OFAP) and contributed to consultancy assignments on financial and commercial aspects of the power sector.

His contributions have been instrumental in strengthening the company's institutional framework, expanding operations, and enhancing appraisal and risk management frameworks. He has significantly contributed to the growth of the loan portfolio and the resolution of stressed assets. Additionally, he has been involved in formulating lending policies, developing financial analysis systems, establishing borrower rating mechanisms, and ensuring regulatory compliance. He has also led the IT transformation of the organization, enhancing overall IT capacity development.

As per the declaration provided by Shri V. Packirisamy, he is not debarred from holding the office of Director by virtue of any SEBI Order or any other such authority. There are no reported relationships between directors.