The Government of India has decided in-principle for strategic sale of its 52.63% holding in Rural Electrification Corporation (REC) Ltd. to Power Finance Corporation (PFC) Ltd.

This would help them to achieve integration across the Power Sector value chain, evoke better synergies, create economies of scale, enhance capability to support energy access and energy efficiency, and may also reduce the cost of power financing. Adequate precautions have been envisaged to maintain their Capital levels.