REC Limited has announced the establishment of Apta Power Transmission as an indirect unit under REC Power Development and Consultancy. This corporate development represents a strategic expansion of the company's power transmission operations.

Corporate Structure Enhancement

The formation of Apta Power Transmission as an indirect subsidiary demonstrates REC's commitment to strengthening its organizational structure within the power sector. The new unit will operate under the umbrella of REC Power Development and Consultancy, creating a more specialized approach to power transmission activities.

Strategic Positioning

This establishment aligns with REC's broader strategy of expanding its presence across different segments of the power infrastructure value chain. The creation of Apta Power Transmission as a dedicated unit is expected to enhance the company's operational efficiency in the transmission sector.

Organizational Development

The move to establish Apta Power Transmission reflects REC's focus on creating specialized units to handle specific aspects of power infrastructure development. This organizational restructuring is designed to optimize the company's service delivery capabilities in the power transmission domain.

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.