New Delhi, Feb. 1 -- On plans to restructure non-banking financial companies (NBFCs) in the government sector, M Nagaraju, Secretary, Department of Financial Services (DFS), on Sunday said the consolidation would enhance capital strength, enabling the merged entity to borrow more and extend financing to a larger number of projects.

In a post-Budget conversation with ANI, Secretary DFS Nagaraju said, "Both Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) provide project financing to the public and private sectors in energy. If two NBFCs are financing the same projects in the same sector, it makes rational sense to examine a merger."

He added that consolidation would enhance capital strength, enabling the merged...