Government nods sale of its 53pc stake in REC to Power Finance Corp
New Delhi, Dec 6 : The Cabinet Committee on Economic Affairs (CCEA) on Thursday accorded in-principle approval for the strategic sale of the governments existing 52.63 per cent majority shareholding in the Rural Electrification Corporation (REC) to the state-run Power Finance Corporation (PFC), along with transfer of management control.
"It may also allow for cheaper fund raising with increase in bargaining power for the combined entity," it said.
Briefing reporters here on the cabinet decisions, Finance Minister Arun Jaitley said that both entities will continue to remain separate companies, while the "shareholding of one company will control that of the other".
Both PFC and REC are central public eector enterprises under the Power Ministry.