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 (NSE: RECLTD, BSE: 532955), a Maharatna company in the power sector, has announced the incorporation of two new wholly owned subsidiaries as part of its network expansion projects. This strategic move aims to strengthen REC's position in the power transmission infrastructure sector.

Key Details of the New Subsidiaries

Project Background

The establishment of these subsidiaries follows a Gazette Notification issued by the Ministry of Power, Government of India, on September 18, 2025. This notification allocated inter-state transmission projects to REC Power Development and Consultancy Limited (RECPDCL), a wholly owned subsidiary of REC Limited.

Role of RECPDCL

RECPDCL has been appointed as the Bid Process Coordinator (BPC) for these projects. Its responsibilities include:

1. Overseeing the selection of bidders for the establishment of the WR-ER Inter-Regional Network Expansion Scheme.
2. Managing the Tariff Based Competitive Bidding (TBCB) process.

Future Plans

After the successful selection of bidders through the TBCB process, both newly incorporated companies are set to be transferred to the respective successful bidders. This transfer will include all assets and liabilities associated with each company.

Regulatory Compliance

This corporate action aligns with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The incorporation of these subsidiaries also complies with Section 2(87) of the Companies Act, 2013.

REC's strategic expansion through these subsidiaries underscores its commitment to enhancing power transmission infrastructure and contributing to India's growing energy needs.