REC has successfully completed the transfer of two power transmission subsidiaries to winning bidders, marking a significant milestone in the company's strategic restructuring efforts. The transaction follows a competitive bidding process that has now reached its conclusion.

Transaction Details

The transfer involves two power transmission subsidiaries that were part of REC's portfolio. The subsidiaries have been handed over to the successful bidders who emerged from the competitive selection process.

Operational Timeline

The transferred subsidiaries will continue their current operations until January 9, 2026, when they will officially cease operations under REC's structure. This timeline provides a clear transition period for the new ownership to take full control and implement their operational strategies.

Strategic Implications

This divestment represents REC's ongoing portfolio optimization strategy, allowing the company to focus resources on its core business areas. The successful completion of the bidding process demonstrates market confidence in the value of these transmission assets.

The transaction concludes a structured divestment process that began with the identification of these subsidiaries for strategic sale. The competitive bidding approach ensured optimal value realization for REC while maintaining the operational integrity of the transmission assets.

REC Limited has completed the divestment of two power transmission subsidiaries through its wholly owned subsidiary REC Power Development and Consultancy Limited (RECPDCL). The transactions were finalized on January 9, 2026, following a tariff-based competitive bidding process conducted in accordance with Ministry of Power guidelines.

Transaction Overview

The divestment involved the complete transfer of shareholding in two project-specific Special Purpose Vehicles (SPVs), each comprising 50,000 equity shares transferred at par value along with all associated assets and liabilities.

Subsidiary Transfer Details

The two power transmission companies have been acquired by established players in the Indian power sector:

Financial and Regulatory Aspects

Both subsidiaries contributed negligible amounts to REC Limited's turnover, revenue, and net worth during the last financial year. The consideration received comprises professional fees including taxes and reimbursement of expenses, determined according to Ministry of Power guidelines.

Key regulatory confirmations include:

• Neither transaction falls within the purview of related party transactions
• Both successful bidders are independent entities not belonging to REC's promoter or promoter group
• The transactions are not in the nature of slump sales
• No compliance requirements under Regulation 37A of LODR Regulations apply

Corporate Structure Impact

Following the completion of these transactions, both Velgaon Power Transmission Limited and Jejuri Hinjewadi Power Transmission Limited are no longer subsidiaries of RECPDCL or REC Limited. The divestment aligns with REC's strategic focus on its core business operations while ensuring these transmission projects continue under experienced industry operators.

The Share Purchase Agreements were executed between RECPDCL and the respective successful bidders on January 9, 2026, marking the formal completion of the divestment process that began with the competitive bidding exercise.