Intimation of incorporation of subsidiary companies.
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REC Limited has informed stock exchanges about the incorporation of two new subsidiary companies — Umred Power Transmission Limited and Sakoli Power Transmission Limited — on July 7, 2025. Both are Wholly Owned Subsidiaries of REC Power Development and Consultancy Limited (RECPDCL), which is itself a wholly owned subsidiary of REC Limited. Each company has an authorized and paid-up capital of ₹5 lakh and is yet to commence business. The subsidiaries were set up following a Government of Maharashtra order dated April 9, 2025, which allocated intra-state transmission projects for the 400/220/132 kV substations at Umred (Nagpur district) and Sakoli (Bhandara district). RECPDCL has been nominated as the Bid Process Coordinator (BPC), and after selection of a successful bidder under the Tariff Based Competitive Bidding (TBCB) process, these companies will be transferred to the winning bidder along with all assets and liabilities.
This is a routine procedural step in REC's role as a facilitator of power transmission projects and is not expected to materially impact REC's financials or stock price. Shareholders should note that these subsidiaries are temporary Special Purpose Vehicles (SPVs) that will eventually be handed over to the winning bidder via competitive bidding, so they will not contribute to REC's long-term earnings.