REC Limited has incorporated Nawada Durgapur Power Transmission Limited as a wholly owned subsidiary of REC Power Development and Consultancy Limited. The new entity, incorporated on July 10, 2026, will operate within the power sector and is classified as a related party of REC Limited. The subsidiary was established to facilitate the ERES-47: Nawada – Durgapur – Jeerat (New) 765kV corridor project, which was allocated by the Ministry of Power, Government of India via a Gazette Notification dated March 24, 2026.

REC Power Development and Consultancy Limited has been appointed as the Bid Process Coordinator for this inter-state transmission project. Following the selection of a successful bidder through Tariff Based Competitive Bidding guidelines, the subsidiary will be transferred to the winning bidder along with all its assets and liabilities. The promoter, promoter group, and group companies of REC Limited hold no interest in the new entity other than their shareholding extent.

The incorporation was disclosed to the exchanges pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The authorized and paid-up capital of Nawada Durgapur Power Transmission Limited stands at ₹5,00,000. As the company is newly incorporated and yet to commence business, its turnover is currently not applicable.

Key Details of Nawada Durgapur Power Transmission Limited

The specific purpose of the acquisition is to undertake the identified transmission corridor project. The consideration for the acquisition involved a 100% subscription to the equity share capital in cash at face value. REC Power Development and Consultancy Limited acts as the Bid Process Coordinator for the selection of Transmission Service Providers through the competitive bidding process for projects assigned by the Ministry of Power and State Governments.

REC Limited, through its wholly owned subsidiary REC Power Development and Consultancy Limited (RECPDCL), transferred the entire shareholding of two project-specific Special Purpose Vehicles (SPVs) on June 30, 2026. The transfer of WR ER Part A Power Transmission Limited and WR ER Part C Power Transmission Limited was completed after receipt of necessary consideration from the successful bidders selected through a tariff-based competitive bidding process. The total consideration for the sale amounted to ₹30.54 crore, comprising ₹18.62 crore for the first SPV and ₹11.93 crore for the second, inclusive of taxes and professional fees. Consequently, these entities ceased to be subsidiaries of RECPDCL and REC Limited with effect from the said date.

The Share Purchase Agreement (SPA) for both transactions was executed on June 30, 2026. The buyers identified were Power Grid Corporation of India Limited for WR ER Part A Power Transmission Limited and H G Infra Engineering Limited for WR ER Part C Power Transmission Limited. The filing confirmed that neither bidder belongs to the promoter or promoter group of REC Limited. The transactions do not fall within the purview of related party transactions and are not in the nature of slump sales. The consideration for the transfer was determined in accordance with the guidelines issued by the Ministry of Power, Government of India.

Transaction Details

The turnover or revenue contribution of these units to REC Limited during the last financial year was negligible. The intimation regarding this sale and transfer was submitted to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.