KARNATAKA BENGALURU 10/10/2023 Electric transmission tower and wires at Pavagada . Photo : BHAGYA PRAKASH K / THE HINDU
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BHAGYA PRAKASH K
“The vision for NBFCs for Viksit Bharat has been outlined with clear targets for credit disbursement and technology adoption. In order to achieve scale and improve efficiency in the public sector NBFCs, as a first step, it is proposed to restructure the Power Finance Corporation and Rural Electrification Corporation,” said Finance Minister Nirmala Sitharaman.
Sambitosh Mohapatra, Partner and Leader Climate and Energy at PwC India, said :“The restructuring of Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) is a transformative move—unlocking deep capital pools which are critical to powering the ₹12.2 lakh crore capex cycle.”
India is no longer merely participating in the energy transition but is positioning itself to shape it, he added.
Similarly, Raju Kumar, Partner and Energy Tax Leader at EY India said that the restructuring of PFC and REC “could improve credit flow and execution discipline across the power sector.”
Proposed restructuring
Kushagra Nandan, Co-Founder of LNK Energy, explained that from a financing perspective, the proposed restructuring of PFC and REC to improve credit disbursement and efficiency is a positive development. Faster and more predictable flow of capital from these institutions can materially support renewable energy developers and manufacturers alike.
Pratik Shah, National Financial Services Leader at EY India, noted that the vision for NBFCs, including restructuring and efficiency improvements in PSU NBFCs such as PFC and REC, points to their repositioning as specialised development finance institutions for long-tenor financing without crowding out banks.
Published on February 1, 2026
