Budget 2026: Nirmala Sitharaman calls for restructuring of Power Finance Corp, Rural Electrification Corp 

Seeking to improve efficiencies in disbursal of credit to the sector, Finance Minister Nirmala Sitharaman in her ninth budget presentation on Sunday (February 1, 2026) called for restructuring of the State-operated non-banking financial companies Power Finance Corporation and the Rural Electrification Corporation Ltd.

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Ms. Sitharaman emphasised that this would help to achieve scale and improve efficiencies in public sector non-banking financial companies.”

The Finance Minister also emphasized that this is part of the government’s vision for Viksit Bharat, which entails clear targets for credit disbursement and technology adoption.

The ‘Maharatna’ public sector NBFCs, under the administrative control of the Ministry of Power, are mandated to provide long-term financing and loans to meet the requirements of India’s power sector.