REC Limited , a Maharatna company in the power sector, has successfully completed the sale of its subsidiary, Rajgarh Neemuch Power Transmission Limited, to OR Infra Projects Limited for ₹5.00 crore. This strategic move aligns with REC's ongoing efforts to streamline its operations and optimize its portfolio of assets.

Transaction Details

The divestment involves the transfer of REC's entire shareholding in Rajgarh Neemuch Power Transmission Limited, comprising 50,000 equity shares. The transaction was executed through REC Power Development and Consultancy Limited (RECPDCL), a wholly-owned subsidiary of REC Limited.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, REC has disclosed the following key details of the transaction:

• The Share Purchase Agreement was executed on September 29.
• The successful bidder, OR Infra Projects Limited, was selected through a tariff-based competitive bidding process.
• The consideration for the sale includes a professional fee of ₹15.00 crore and reimbursement of expenses.

Impact on REC

REC has stated that the turnover, revenue, income, and net worth contributed by Rajgarh Neemuch Power Transmission Limited during the last financial year were negligible. This suggests that the divestment is unlikely to have a significant impact on REC's overall financial position.

Regulatory Aspects

It's worth noting that:

• The transaction does not fall within the purview of related party transactions.
• OR Infra Projects Limited, the acquiring company, does not belong to the promoter or promoter group of REC.
• The sale is not in the nature of a slump sale, and the consideration was determined in accordance with the guidelines issued by the Ministry of Power, Government of India.

This divestment marks a strategic move for REC, potentially allowing the company to focus on its core operations and optimize its resource allocation. As the power sector continues to evolve, such strategic decisions may play a crucial role in shaping the future of major players like REC Limited.

REC Limited , a Maharatna company under the Government of India, has announced the incorporation of a new wholly-owned subsidiary, Bellary Davanagere Power Transmission Limited (BDPTL). This strategic move is aimed at strengthening the transmission system for integrating additional renewable energy potential in Karnataka.

Key Details of the New Subsidiary

Project Specifics

The newly formed subsidiary, BDPTL, has been established to handle a significant transmission system strengthening project. This initiative is designed to integrate additional renewable energy potential at two key locations:

1. Davanagere: 0.25 GW
2. Bellary: 2.75 GW

Role of RECPDCL

REC Power Development and Consultancy Limited (RECPDCL) has been appointed as the Bid Process Coordinator (BPC) for this project. Its responsibilities include:

• Selecting a bidder through the Tariff Based Competitive Bidding (TBCB) process
• Overseeing the transfer of the company to the successful bidder, along with all assets and liabilities, once the selection process is complete

Regulatory Framework

The incorporation of BDPTL follows a significant regulatory development:

• Ministry of Power Notification: Dated August 19, 2025
• Purpose: Allocation of an inter-state transmission project

Impact on REC Limited

While BDPTL is directly a subsidiary of RECPDCL, it also qualifies as a subsidiary of REC Limited under Section 2(87) of the Companies Act, 2013. This structure allows REC Limited to maintain indirect control over the project while leveraging RECPDCL's expertise in power development and consultancy.

Future Outlook

The establishment of BDPTL underscores REC Limited's commitment to enhancing India's renewable energy infrastructure. By facilitating the integration of 3 GW of additional renewable energy potential, this project aligns with the nation's goals for sustainable energy development and supports the transition towards a greener power sector.

As the project progresses, it will be crucial to monitor the bidding process and the eventual transfer of BDPTL to the successful bidder. This transition will mark a significant step in the realization of enhanced renewable energy transmission capabilities in the Davanagere and Bellary regions of Karnataka.