REC Limited has completed the sale and transfer of its project-specific special purpose vehicle (SPV), Ryapte Power Transmission Limited, to The Tata Power Company Limited. The transaction, finalized on July 30, 2026, involved the transfer of the entire shareholding comprising 50,000 equity shares held by REC Power Development and Consultancy Limited (RECPDCL), a wholly owned subsidiary of REC Limited. The deal was executed after RECPDCL received the necessary consideration from the successful bidder selected through a tariff-based competitive bidding process.

The total consideration for the sale amounts to ₹10,86,62,034, which includes applicable taxes, professional fees, and reimbursement of expenses. With effect from July 30, 2026, Ryapte Power Transmission Limited is no longer a subsidiary of RECPDCL or REC Limited. The Share Purchase Agreement (SPA) was executed between RECPDCL and The Tata Power Company Limited on the same date. The buyer does not belong to the promoter or promoter group of REC Limited, and the transaction is not classified as a related party transaction.

Transaction Details

Regulatory Compliance and Financial Impact

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing confirms that the transaction does not fall within the purview of related party transactions and is not in the nature of a slump sale. Furthermore, the sale is outside any Scheme of Arrangement, rendering Regulation 37A of the LODR Regulations not applicable.

The consideration for the sale and transfer of the SPV was determined in accordance with the guidelines issued by the Ministry of Power, Government of India. According to the disclosure, the turnover, revenue, income, and net worth contributed by Ryapte Power Transmission Limited during the last financial year were negligible. This suggests that the divestiture has minimal impact on the consolidated financial statements of REC Limited for the preceding period.

What the Numbers Show

The negligible financial contribution of Ryapte Power Transmission Limited indicates that this divestiture is likely part of a portfolio optimization strategy rather than a response to underperformance or distress. By exiting through a competitive bidding process and transferring assets and liabilities simultaneously, REC Limited has effectively de-risked its exposure to this specific transmission project while realizing a defined exit value. The involvement of The Tata Power Company Limited, a major player in the power sector, suggests a strategic alignment in asset management within the industry.

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.