New Delhi, Feb. 1 -- The Centre will restructure power sector-focused financial institutions, Power Finance Corp. Ltd and REC Ltd, Union finance minister Nirmala Sitharaman said in her Budget 2026 speech.

Presenting the Union Budget 2026-27, Sitharaman said the move is in line with the target to strengthen public-sector financial institutions.

"The vision for NBFCs (non-banking financial companies) for 'Viksit Bharat' has been outlined for clear targets for credit disbursements and technology adoption in order to scale and improve efficiency in the public sector NBFCs. As a first step, it is proposed to restructure PFC and REC," she said.

The development comes at a time when both PFC and REC are playing a key role in India's energy sec...