[UPDATE]: Cabinet Committee on Economic Affairs approves sale of government’s 52.63 pct stake in REC to PFC

The CCEA has permitted the sale of the federal government’s 52.63 per cent stake in REC Ltd to Energy Finance Company.

Finance Minister Arun Jaitley, ccea, pm narendra modi, narendra modi, arun jaitley

The Cupboard Committee on Financial Affairs on Thursday permitted the sale of the federal government’s 52.63 per cent stake in REC Ltd to Energy Finance Company (PFC).

The federal government is predicted to garner round Rs 15,000 crore from this merger.

“The CCEA gave in precept approval for strategic sale of the Authorities of India’s present 52.63 per cent of complete paid up fairness shareholding in REC Ltd to Energy Finance Company together with switch of administration management,” Finance Minister Arun Jaitley stated at a press convention after the Cupboard assembly right here.

The federal government held 57.99 per cent stake in REC, and 65.64 per cent in PFC at September-end.

Nevertheless, the federal government holding in REC got here right down to 52.63 per cent following stake sale by means of ETF.

Jaitley additionally stated he had talked in regards to the merger of public sector undertakings working in the identical area within the funds for 2017-18.

In his funds speech, he had stated there have been alternatives to strengthen CPSEs by means of consolidation, mergers and acquisitions.

“By these strategies, CPSEs will be built-in throughout the worth chain of an trade. It can give them capability to bear increased dangers, avail economies of scale, take increased funding choices and create extra worth for the stakeholders,” he had stated.

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