Rural Electrification Corporation has issued an official clarification regarding recent reports about the government considering a merger between the company and Power Finance Corporation. The company has categorically stated that it is not engaged in any discussions or negotiations related to such a merger proposal.

Company's Official Statement

REC's clarification comes in response to widespread reports suggesting that the Indian government was exploring a strategic consolidation plan involving the two major public sector undertakings. The company has made it clear that no formal discussions or negotiations are currently underway regarding any potential merger with PFC.

Background Context

Both REC and Power Finance Corporation serve as key financing arms for India's power sector infrastructure development. Rural Electrification Corporation specializes in financing rural electrification and renewable energy projects, while Power Finance Corporation focuses on providing financial assistance to power projects across the country.

Market Response

The clarification addresses market speculation that had emerged following reports of potential government plans to streamline public sector enterprises in the power financing sector. REC's statement provides clarity to stakeholders and investors regarding the company's current operational status and strategic direction.

REC has announced a dividend declaration of ₹4.60 per share for its shareholders, marking another distribution of profits to equity holders.

Dividend Declaration Details

The company has formally declared a dividend payment that will provide direct returns to shareholders. The dividend amount represents the per-share distribution that eligible shareholders will receive.

Shareholder Impact

This dividend declaration will benefit all eligible shareholders who hold REC shares as per the applicable record date. The announcement reflects the company's policy of sharing profits with its investor base and maintaining regular dividend distributions.

Shareholders can expect to receive the dividend payment following the completion of all regulatory requirements and processing procedures. The dividend represents a direct return on investment for equity holders in the rural electrification financing company.