KARNATAKA BENGALURU 10/10/2023 Electrical transmission tower and wires at Pavagada . Photograph : BHAGYA PRAKASH Okay / THE HINDU
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BHAGYA PRAKASH Okay
The Funds proposal to restructure PFC and REC, funding and funding arms of the Power Ministry, not solely emphasises the federal government’s deal with put together a imaginative and prescient for state-controlled NBFCs in a developed economic system, but in addition to improve credit flows and execution in the electrical energy and infrastructure sectors.
“The imaginative and prescient for NBFCs for Viksit Bharat has been outlined with clear targets for credit disbursement and know-how adoption. So as to obtain scale and improve effectivity in the general public sector NBFCs, as a primary step, it’s proposed to restructure the Power Finance Company and Rural Electrification Company,” mentioned Finance Minister Nirmala Sitharaman.
Sambitosh Mohapatra, Accomplice and Chief Local weather and Vitality at PwC India, mentioned :“The restructuring of Power Finance Company (PFC) and Rural Electrification Company (REC) is a transformative transfer—unlocking deep capital swimming pools that are crucial to powering the ₹12.2 lakh crore capex cycle.”
India is not merely taking part in the vitality transition however is positioning itself to form it, he added.
Equally, Raju Kumar, Accomplice and Vitality Tax Chief at EY India mentioned that the restructuring of PFC and REC “might improve credit movement and execution discipline throughout the power sector.”
Proposed restructuring
Kushagra Nandan, Co-Founding father of LNK Vitality, defined that from a financing perspective, the proposed restructuring of PFC and REC to improve credit disbursement and effectivity is a constructive growth. Sooner and extra predictable movement of capital from these establishments can materially help renewable vitality builders and producers alike.
Pratik Shah, Nationwide Monetary Providers Chief at EY India, famous that the imaginative and prescient for NBFCs, together with restructuring and effectivity enhancements in PSU NBFCs akin to PFC and REC, factors to their repositioning as specialised growth finance establishments for long-tenor financing with out crowding out banks.
Printed on February 1, 2026
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