Bihar Infrapower Limited, a wholly owned subsidiary of Power Finance Corporation , has been struck off by the Registrar of Companies under Section 248 of the Companies Act 2013. This action follows the approval granted by the Ministry of Power, Government of India, to close the project and strike off the company's name.

Subsidiary Background and Closure

Bihar Infrapower Limited was incorporated on June 30, 2015, as a Special Purpose Vehicle (SPV) for the purpose of holding various licenses and land for the Ultra Mega Power Project in the State of Bihar (Banka UMPP). The subsidiary was not classified as a material subsidiary of Power Finance Corporation. Subsequently, the decision was made to close the project.

Regulatory Approvals

The Ministry of Power granted its approval for the closure and striking off of the company's name on November 27, 2025. Following this, the required documents for closure were filed with the Ministry of Corporate Affairs. The Registrar of Companies issued the final strike-off order via Public Notice No. ROC/C-PACE/STK-2/248(5)/2026-27/426.

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.