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.

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.