India, April 8 -- The Government is looking at options, including issuance of preference shares or fresh equity, to maintain 51 per cent stake in the State-owned Power Finance Corporation (PFC) post its merger with Rural Electrification Corporation (REC), a senior official said.

Finance Minister Nirmala Sitharaman had, in the FY27 Budget, announced the restructuring of PFC and REC to help achieve scale and improve efficiency in the public sector NBFC space. "The Government would like to retain a majority stake in the merged entity as it would be the largest Government-owned NBFC with strategic presence. Discussions are going on over the options to ensure that the Government stake in the merged entity does not fall below 51 per cent," the...