REC Limited has completed the sale and transfer of its project-specific subsidiary Umred Power Transmission Limited to Maharashtra State Electricity Transmission Company Limited (MSETCL). The transaction was executed through the Tariff-Based Competitive Bidding (TBCB) method in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Transaction Overview

The sale was completed through REC Power Development and Consultancy Limited (RECPDCL), a wholly owned subsidiary of REC Limited. RECPDCL transferred its entire shareholding comprising 50,000 equity shares in Umred Power Transmission Limited at par value, along with all assets and liabilities of the company.

Financial Details

The total consideration for the acquisition amounts to ₹2.34 crore (₹2,34,28,481), which is inclusive of professional fees, reimbursement of expenses and taxes. The Share Purchase Agreement (SPA) was executed between RECPDCL and the successful bidder following the competitive bidding process.

Bidding Process and Compliance

Maharashtra State Electricity Transmission Company Limited was selected as the successful bidder through a tariff-based competitive bidding process. The company has confirmed that MSETCL does not belong to the promoter or promoter group, ensuring the transaction remains at arm's length.

Impact on Corporate Structure

Following the completion of this transaction, Umred Power Transmission Limited is no longer a subsidiary of RECPDCL or REC Limited. The subsidiary had contributed negligible amounts to the turnover, revenue, income and net worth of REC Limited during the last financial year. The consideration for the sale and transfer was determined in accordance with guidelines issued by the Ministry of Power, Government of India.

REC Limited has incorporated a new wholly owned subsidiary, Vizag Power Transmission Limited, to support green energy infrastructure development in Andhra Pradesh. The company was established on February 16, 2026, with CIN U42202DL2026GOI463642, as part of the government's initiative to develop transmission systems for Green Hydrogen and Green Ammonia projects.

Company Structure and Capitalization

Vizag Power Transmission Limited has been incorporated as a wholly owned subsidiary of REC Power Development and Consultancy Limited (RECPDCL), which is itself a wholly owned subsidiary of REC Limited. This makes the new entity a subsidiary of REC Limited under Section 2(87) of the Companies Act, 2013.

Government Mandate and Project Scope

The incorporation follows a Ministry of Power notification dated December 26, 2025, which allocated an inter-state transmission project to RECPDCL. Under this mandate, RECPDCL has been appointed as Bid Process Coordinator (BPC) for selecting bidders for transmission systems supporting proposed Green Hydrogen and Green Ammonia projects in the Vizag area of Andhra Pradesh (Phase-I).

The newly incorporated company will facilitate the development of critical transmission infrastructure to support India's green energy transition. RECPDCL regularly acts as BPC for transmission service provider selection through Tariff Based Competitive Bidding (TBCB) processes for independent inter-state and intra-state transmission projects assigned by the Ministry of Power and state governments.

Acquisition Structure and Future Plans

The subsidiary represents a related party transaction, with REC Limited holding 100% shareholding through RECPDCL. The equity shares were subscribed at face value through cash consideration. Promoters and group companies have no interest in the entity beyond the shareholding structure.

Following the successful completion of the TBCB process and selection of the winning bidder, Vizag Power Transmission Limited will be transferred to the successful bidder along with all associated assets and liabilities. This transfer mechanism aligns with standard practices for transmission project development in India's power sector.

Strategic Significance

The incorporation of Vizag Power Transmission Limited underscores REC Limited's expanding role in India's renewable energy infrastructure development. As the company has yet to commence business operations, no turnover has been recorded. The focus on Green Hydrogen and Green Ammonia projects positions the subsidiary at the forefront of emerging clean energy technologies that are expected to play a crucial role in India's decarbonization efforts.