Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.

Portfolio

Loading...
Select Portfolio and Asset Combination for Display on Market Band
Select Portfolio
Select Asset Class
Show More

CHOOSE LANGUAGE

ENG

  • ENG - English
  • HIN - हिन्दी
  • GUJ - ગુજરાતી
  • MAR - मराठी
  • BEN - বাংলা
  • KAN - ಕನ್ನಡ
  • ORI - ଓଡିଆ
  • TEL - తెలుగు
  • TAM - தமிழ்
Drag according to your convenience
ET NOW RADIO
ET NOW
TIMES NOW

Cabinet approves REC takeover by Power Finance Corporation

, ET Bureau|
Updated: Dec 06, 2018, 11.14 PM IST
0Comments
Cabinet approves sale of government’s stake in REC to PFC
Cabinet approves sale of government’s stake in REC to PFC
The Union cabinet on Thursday approved sale of government’s shareholding in REC Ltd to Power Finance Corporation (PFC) along with transfer of management control, in a deal estimated to raise over Rs 14,000 crore.

“The cabinet committee on economic affairs has given ‘in principle’ approval for strategic sale of the government of India’s existing 52.63% of total paid up equity shareholding in REC to Power Finance Corporation along with transfer of management control,” finance minister Arun Jaitely said in a briefing after the cabinet meet.

The two will remain two different management companies, he said.

The acquisition intends to achieve integration across the power chain, obtain better sunergies, create economies of scale and have enhanced capability to support energy access and energy efficiency by improved capability to finance power sector. It may also allow for cheaper fund raising with increase in bargaining power for the combined entity, an official statement said.

Arun Jaitley said a ministerial committee constituting himself, power minister R K Singh and road transport minister Nitin Gadkari will work out modalities of the acquisition based on recommendations submitted by a committee of secretaries.

0Comments
Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Loading
Please wait...