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flag India plans to merge PFC and REC to boost power and infrastructure financing.

flag The Indian government has announced plans to restructure state-owned Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) to improve efficiency, strengthen financing for power and infrastructure projects, and support India’s ₹12.2 lakh crore capital expenditure drive. flag The move, revealed in the Union Budget 2026-27, aims to merge the two entities to enhance their capital base, reduce duplication, and boost lending capacity, with experts noting potential benefits for renewable energy and infrastructure development. flag PFC and REC shares rose up to 6 percent following the announcement, though broader market indices declined. flag Specific implementation details remain pending.

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