# Indian power sector financing and corporate developments > Live situation record from CLSTR: https://clstr.news/situations/indian-power-sector-financing-and-corporate-developments > Updated: 2026-08-25T04:50:51.000Z. Sources: 2. Developments: 2. Power Finance Corporation (PFC) has expanded its involvement in renewable energy and infrastructure development in India. The corporation approved a long-term loan of approximately Rs 3,405 crore to ACME Solar Holdings Ltd for a 250 MW renewable energy project involving solar, wind, and battery storage across Rajasthan and Gujarat. Additionally, PFC established a subsidiary, Kushtagi Transmission Limited, to develop a 765 kV interstate transmission line in Karnataka. Furthering its strategic positioning, PFC is proceeding with a merger-by-absorption scheme with REC Limited. The merger aims to improve capital efficiencies, balance sheet strength, and operational synergies to support large-scale funding within the power sector. During the same period, REC reported record annual disbursements and an increased focus on renewable energy projects. ## Timeline ### 2026-08-25: REC Limited and Power Finance Corporation merger underway REC Limited is progressing with a merger with Power Finance Corporation to boost power sector funding and credit flow, while also completing the sale of Luhri Power Transmission to Terralight Solar Energy. 2 sources. https://clstr.news/cluster/rec-limited-and-power-finance-corporation-merger-underway ### 2026-07-29: Power Finance Corp funds 250 MW solar project and launches Karnataka transmission SPV Power Finance Corp approved a Rs 3,405 cr loan for ACME Solar's 250 MW renewable project and created Kushtagi Transmission Limited to develop a 765 kV Karnataka transmission line. 4 sources. https://clstr.news/cluster/power-finance-corporation-funds-acme-solar-250-mw-renewable-project-and-creates-karnataka-transmissi --- Cite as: Indian power sector financing and corporate developments. CLSTR, https://clstr.news/situations/indian-power-sector-financing-and-corporate-developments