New Delhi, Feb. 6 -- Power Finance Corp. Ltd's board on Friday approved the merger of its subsidiary REC Ltd into the parent, days after the Union Budget 2026-27 proposed restructuring of the two power-sector-focused non-banking financial companies (NBFCs).

The PFC board said in a regulatory filing that it would "ensure that, post-merger, PFC continues to remain as a 'Government Company' under the Companies Act, 2013 and other applicable laws", adding that the detailed merger scheme, once finalized, would be shared after requisite approvals.

These public-sector undertakings (PSUs) play a key role in the country's energy transition plans and have a cumulative loan book of Rs.11 trillion.

On Thursday, in an interview, Union finance minis...