Shares of Rural Electrification Corporation and Power Finance Corporation traded higher on Sunday, February 1, after a key announcement in Union Budget 2026 regarding the restructuring of the two power sector lenders.
While presenting the Budget, Nirmala Sitharaman said the government plans to restructure Power Finance Corporation and REC, a move aimed at strengthening the power financing ecosystem and improving efficiency in funding electricity generation, transmission, and distribution projects.
As of around 11:31 AM IST, REC shares were trading at Rs 379.60, up 1.15%, gaining Rs 4.30 in the session. Meanwhile, Power Finance Corporation shares were trading at Rs 395.10, up 2.15%, adding Rs 8.30 from the previous close.
The announcement has brought both stocks into focus as investors assess the potential impact of the proposed restructuring on governance, capital allocation, and long-term lending capacity. PFC and REC play a central role in financing state utilities, renewable energy projects, and grid expansion across the country.
Further details on the scope, structure, and timeline of the restructuring are expected to be outlined in detailed Budget documents and follow-up policy notifications.
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