The government is looking to strengthen public sector undertakings (PSUs) through consolidation, mergers and acquisitions.
The government is mulling a 65.6 percent stake sale in Power Finance Corporation (PFC) to REC. PV Ramesh, CMD of REC, spoke to CNBC-TV18 about the stake sale.
"The PFC stake sale by the government discussion is at a preliminary stage," Ramesh said. He further said that, "As a PSU I am not directly involved with the nuts and bolts issues of the acquisition."
Talking about the merger synergy, he said, “At a very conceptual level I would like to believe that there would a strong synergy because essentially REC, PFC though genealogically they are different; we stared way back in ’69 as a company responsible for electrification of irrigation pumps as part of the green revolution and PFC stared in ’85 as purely power financing company.”
“Ever since 2003 with the new Electricity Act and demand for investment in the power sector especially after both of us have been listed things have moved afar,” he added.
According to him, "REC is involved as a nodal agency for various measures taken by government".
On the business front, Ramesh said that 86 percent of our lending is to public enterprises.
“We are optimistic that we will electrify every single household by end of this year,” he said.
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