REC Limited announced that its wholly owned subsidiary, REC Power Development and Consultancy Limited (RECPDCL), has completed the sale of its entire shareholding in Nawada Durgapur Power Transmission Limited.

The transaction, executed on October 16, 2026, involved the transfer of 50,000 equity shares to Shivalaya Construction Limited. The consideration received was ₹18.44 crore, inclusive of taxes, professional fees, and expense reimbursements. The buyer was selected through a tariff-based competitive bidding process.

Transaction Details

The sale marks the exit of RECPDCL from the project-specific special purpose vehicle (SPV). With the transfer effective from October 16, 2026, Nawada Durgapur Power Transmission Limited is no longer a subsidiary of either RECPDCL or REC Limited. The company confirmed that the buyer does not belong to the promoter or promoter group, ensuring the transaction is not classified as a related party deal.

Regulatory and Financial Impact

The transfer was executed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing highlighted that the contribution of the divested unit to the listed entity’s turnover, revenue, income, and net worth during the last financial year was negligible. This indicates that the disposal is unlikely to have a material impact on REC Limited’s consolidated financial performance.

The consideration amount was determined in accordance with guidelines issued by the Ministry of Power, Government of India. The transaction was not structured as a slump sale, nor did it fall within the scope of a scheme of arrangement. The Share Purchase Agreement (SPA) between RECPDCL and the successful bidder was signed on the same day as the transfer completion.

REC Ltd has incorporated three wholly owned subsidiaries to facilitate specific power transmission projects in Rajasthan and Uttar Pradesh. The entities, established as subsidiaries of REC Power Development and Consultancy Limited (RECPDCL), are designed to act as Special Purpose Vehicles (SPVs) for upcoming inter-state and intra-state transmission schemes.

The newly formed companies are Bikaner V Part A Power Transmission Limited, Bikaner V Part B Power Transmission Limited, and Mirzapur Power Transmission Limited. All three were incorporated on October 5, 2026, with an authorized and paid-up capital of ₹5,00,000 each. As these are newly incorporated entities, they have not yet commenced business operations or generated turnover.

Project Allocation and Role

The incorporation follows directives from the Ministry of Power and state authorities. RECPDCL has been appointed as the Bid Process Coordinator (BPC) for these projects. The two Bikaner entities are linked to the Rajasthan Renewable Energy Zone (REZ) Phase-IV, specifically the evacuation of power from the Bikaner Complex (6GW). The Mirzapur entity is associated with an intra-state project allocated by U.P. Power Transmission Corporation Limited, involving the construction of 765 kV and 400 kV lines linked to the Mirzapur Pooling Substation.

Transfer Mechanism via TBCB

These subsidiaries are temporary vehicles intended to hold assets until a successful bidder is selected through the Tariff Based Competitive Bidding (TBCB) process. Once the bidder is chosen, the respective company will be transferred to them along with all associated assets and liabilities. This structure allows RECPDCL to manage the bidding process efficiently while ensuring the infrastructure is handed over to private operators who will execute and maintain the transmission lines.

What the Numbers Show

The uniform capitalization of ₹5,00,000 across all three entities highlights their role as administrative shells rather than operational businesses at this stage. The identical paid-up capital suggests a standardized approach by RECPDCL for setting up SPVs under the TBCB framework. The split between two separate entities for the Bikaner complex (Part A and Part B) indicates that the 6GW evacuation capacity is being tendered or managed as distinct packages, potentially to attract multiple bidders or manage different segments of the transmission network separately.