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.

REC Limited , a Maharatna company in the power sector, has announced the complete divestment of its stake in Davanagere Power Transmission Limited. The transaction, valued at ₹5.00 crore, involves the sale of REC's entire 100% shareholding to Power Grid Corporation of India Limited.

Transaction Details

According to the company's filing with the stock exchanges, REC Power Development and Consultancy Limited (RECPDCL), a wholly-owned subsidiary of REC Limited, has transferred 50,000 equity shares of Davanagere Power Transmission Limited at par value. This transfer, which took place on September 24, 2025, includes all assets and liabilities of the project-specific Special Purpose Vehicle (SPV).

Financial Impact

The sale is expected to have a minimal financial impact on REC Limited. The company disclosed that the turnover, revenue, income, and net worth contributed by Davanagere Power Transmission during the last financial year were negligible.

Transaction Structure

The divestment was executed through a Share Purchase Agreement (SPA) between RECPDCL and the successful bidder, Power Grid Corporation of India Limited. The consideration for the sale comprises a professional fee of ₹5.00 crore and reimbursement of expenses.

Regulatory Compliance

REC has confirmed that this transaction does not fall within the purview of related party transactions. The sale was conducted in accordance with the guidelines issued by the Ministry of Power, Government of India.

Strategic Implications

This divestment aligns with REC's strategy to streamline its portfolio and focus on its core business activities. The sale to Power Grid Corporation, another major player in the power transmission sector, suggests a consolidation trend in the industry.

REC Limited continues to play a significant role in India's power sector, focusing on financing and promoting electric power transmission, distribution, and renewable energy projects across the country.