LUCKNOW: The announcement of restructuring of Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) made in the Union Budget 2026-27 has triggered concern among power sector experts, engineers and consumer bodies, who fear it may weaken public institutions and pave the way for privatisation.While Union finance minister Nirmala Sitharaman said the move aims to strengthen public sector financial institutions, critics argue the Budget lacks clarity and ignores pressing challenges faced by the power sector.Member of CERC advisory committee and chairperson of the Uttar Pradesh Rajya Vidyut Upbhokta Parishad, Avadhesh Kumar Verma, questioned the logic of restructuring, noting REC’s net profit grew nearly 10% to Rs 44,781 crore and PFC also showed robust growth.“When both the institutions are strong and profitable, what is the need for this,” he asked, warning that private business groups could be influencing the move to penetrate public financial infrastructure.REC’s net profit rose from Rs 40,805 crore to Rs 44,781 crore last year, while its post-tax profit for the first nine months of 2025-26 stood at Rs 12,920 crore. PFC’s profit also grew from Rs 7,182 crore to Rs 8,981 crore. He questioned why profitable institutions required restructuring and urged the govt to explain its intent.UPRVUP suspects that major private conglomerates may be seeking entry into public financial institutions, like their efforts to gain a stake in electricity infrastructure through the Electricity Amendment Act. It has called for transparency to safeguard the interest of consumers.Shailendra Dubey, chairman of the All-India Power Engineers Federation (AIPEF), said the Budget had failed to address mounting losses of discoms or halt transmission-sector privatisation under tariff based competitive bidding (TBCB) norms. He warned that restructuring REC and PFC without clarity could lead to conditional financing and covert privatisation.Dubey said that power engineers and employees nationwide would strongly oppose any such move.
