REC Limited has incorporated a new wholly owned subsidiary, Musalgaon Power Transmission Limited, to execute a transmission project in Maharashtra. The subsidiary has been established through REC Power Development and Consultancy Limited (RECPDCL), which is itself a wholly owned subsidiary of REC Limited.

Company Structure and Capital Details

The newly incorporated subsidiary operates under specific financial parameters designed for the transmission project:

Project Background and Government Approval

The incorporation stems from the Government of Maharashtra's order dated October 3, 2025, which allocated an intra-state transmission project to establish 220/132/33 kV AIS Musalgaon in Nashik district. Under this arrangement, RECPDCL has been appointed as the Bid Process Coordinator (BPC) for selecting the appropriate bidder through the Tariff Based Competitive Bidding (TBCB) process.

The project represents part of Maharashtra's infrastructure development initiative, with REC Limited's subsidiary structure facilitating the bidding and coordination process for transmission service provider selection.

Related Party Transaction Structure

As a wholly owned subsidiary of RECPDCL, Musalgaon Power Transmission Limited constitutes a related party transaction for REC Limited. The company has confirmed that promoters, promoter groups, and group companies hold no interest in the newly incorporated entity beyond the extent of shareholding through the subsidiary structure.

The acquisition involves 100% subscription to equity share capital at face value through cash consideration, maintaining the standard corporate structure for such transmission project vehicles.

Business Transfer Mechanism

Following the successful completion of the bidder selection process in accordance with TBCB guidelines, Musalgaon Power Transmission Limited will be transferred to the successful bidder along with all associated assets and liabilities. This transfer mechanism aligns with RECPDCL's role as BPC for both independent inter-state and intra-state transmission projects assigned by the Ministry of Power and various State Governments.

The subsidiary incorporation demonstrates REC Limited's continued involvement in India's power transmission infrastructure development through its specialized subsidiary structure, facilitating efficient project execution and bidder coordination processes.

REC Limited has announced the establishment of Ambernath Power Transmission Limited as a wholly owned subsidiary, marking a significant step in the company's infrastructure expansion strategy. The new subsidiary has been specifically created to execute a 400/220 KV Gas Insulated Switchgear (GIS) transmission project.

Strategic Subsidiary Formation

The creation of Ambernath Power Transmission Limited represents REC's approach to managing large-scale transmission projects through dedicated project vehicles. This structure allows for focused project execution and specialized management of the transmission infrastructure development.

Project Specifications

The transmission project involves the development of 400/220 KV Gas Insulated Switchgear infrastructure, which represents advanced technology in power transmission systems. GIS technology offers several advantages including compact design, enhanced reliability, and reduced maintenance requirements compared to conventional air-insulated switchgear.

Infrastructure Development Focus

This subsidiary formation aligns with REC's broader mandate of strengthening India's power transmission and distribution infrastructure. The establishment of project-specific subsidiaries enables the company to maintain operational focus while ensuring efficient project delivery and management.

The Ambernath location suggests strategic positioning to serve the power transmission needs of the Mumbai metropolitan region and surrounding areas, contributing to the overall grid stability and power supply reliability in the region.