rec has incorporated Kukshi Alirajpur Transmission Limited as a wholly owned subsidiary to facilitate the strengthening of the intra-state transmission system in the Kukshi and Alirajpur areas of Madhya Pradesh. The new entity was registered on July 29, 2026, following an order dated February 9, 2026, from the Government of Madhya Pradesh, which appointed REC Power Development and Consultancy Limited (RECPDCL) as the Bid Process Coordinator for the project. This structure allows RECPDCL to manage the bidding process before transferring the company to a selected Transmission Service Provider.

The incorporation was disclosed to the National Stock Exchange of India Limited and BSE Limited on July 30, 2026, pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Kukshi Alirajpur Transmission Limited is also classified as a subsidiary of REC Limited under Section 2(87) of the Companies Act, 2013. The filing confirms that the promoter group has no interest in the entity beyond its shareholding, and the transaction is conducted at arm’s length.

Key Details of the Subsidiary

Project Scope and Transfer Mechanism

The primary objective of Kukshi Alirajpur Transmission Limited is the establishment of new Extra High Voltage (EHV) substations and associated transmission lines in the designated area. RECPDCL, acting as the Bid Process Coordinator, will oversee the Tariff Based Competitive Bidding (TBCB) process to select a successful bidder. Upon completion of the bidding process, the subsidiary, along with all its assets and liabilities, will be transferred to the winning bidder. This model enables the efficient execution of government-assigned transmission projects without long-term balance sheet exposure for REC Limited.

What the Numbers Show

The minimal capitalization of ₹5,00,000 reflects the temporary nature of the entity, which serves primarily as a vehicle for the bidding and handover process rather than an operational holding. Since the company is newly incorporated and has not commenced business, turnover is reported as not applicable. The full subscription of equity share capital in cash at face value indicates that no premium was paid, consistent with the creation of a special purpose vehicle for regulatory compliance and project coordination.

REC Limited has completed the divestment of two project-specific subsidiaries through its wholly owned arm, REC Limited Power Development and Consultancy Limited (RECPDCL). The transfer of shareholding, along with all associated assets and liabilities, was finalized on July 29, 2026, following a tariff-based competitive bidding process. This move streamlines the company’s portfolio by exiting specific transmission projects that contributed negligible revenue in the last financial year, allowing management to focus on core operations and higher-yield assets.

The sale involved the transfer of 50,000 equity shares each from Bhadla Ramgarh Power Transmission Limited and Shongtong Power Transmission Limited. The successful bidders were selected through an open competitive process, ensuring market-driven valuation. The transaction does not constitute a related-party transaction, nor is it classified as a slump sale. Instead, the consideration amounts were determined in accordance with guidelines issued by the Ministry of Power, Government of India.

Transaction Details

The financial specifics of the divestment are outlined below. Both figures include applicable taxes, professional fees, and reimbursement of expenses.

Power Grid Corporation of India Limited acquired Bhadla Ramgarh Power Transmission Limited, while Terralight Solar Energy Tinwari Private Limited took over Shongtong Power Transmission Limited. Neither buyer belongs to the promoter or promoter group of REC Limited.

Regulatory Compliance and Process

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Share Purchase Agreements (SPA) for both entities were executed on July 29, 2026, marking the completion date of the sale. The filing confirms that the transactions are outside the scope of any Scheme of Arrangement under Regulation 37A of the LODR Regulations.

What the Numbers Show

The divestment highlights a strategic shift toward optimizing asset quality rather than sheer volume. Since the sold units contributed negligible turnover and net worth in the previous financial year, their removal likely improves consolidated efficiency metrics without impacting top-line revenue significantly. The use of a competitive bidding mechanism suggests that the valuations reflect current market rates for transmission infrastructure, providing fair value realization for these non-core assets.