News: State-run REC Ltd has suggested the government to consider selling Power Finance Corporation's (PFC) stake in the company to Power Grid Corp of India (PGCIL). PFC had in March 2019 acquired the government's 52.6% stake in REC for Rs14,500 crore to consolidate the two power sector lenders. The government holds a 56% stake in PFC.
Views: Power Grid is in the business of transmitting the power and does not have any experience in financing projects. It will be an unrelated diversification for Power Grid and it will not be able to provide any expertise in this segment apart from that it can also impact power Grid’s main business.
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