Govt appoints REC CMD PV Ramesh as DG of National Archives of India
New Delhi: Ahead of REC's takeover by Power Finance Corporation (PFC), the government has appointed the former's top executive P V Ramesh as the director-general of the National Archives of India.
Besides, there are talks that PFC Chairman and Managing Director Rajeev Sharma could be given additional charge to head REC. According to the Appointment Committee of the Cabinet (ACC) order on March 3, Ramesh has been appointed as the director-general of the National Archives of India under the Ministry of Culture. A source said, "There are talks that PFC CMD Rajeev Sharma would be given additional charge of the REC CMD eventually." In December 2018, the Cabinet Committee on Economic Affairs had approved the sale of the government's 52.63 per cent stake in REC to PFC. The government is expected to garner around Rs 15,000 crore from this merger. The government held 57.99 per cent stake in REC, and 65.64 per cent in PFC at the end of September.
However, the government holding in REC came down to 52.63 per cent following stake sale through exchange-traded fund.
Prior to approval of this takeover by the government, there were talks about REC taking over the PFC by acquiring the government's majority stake. But the situation reversed and the government finally decided that PFC would acquire REC.
In his Budget Speech 2017-18, Finance Minister Arun Jaitley had said there were opportunities to strengthen central public sector enterprises (CPSEs) through consolidation, mergers and acquisitions. "By these methods, CPSEs can be integrated across the value chain of an industry. It will give them capacity to bear higher risks, avail economies of
scale, take higher investment decisions and create more
value for the stakeholders," he had said.