Intimation of incorporation of subsidiary company.
RECLTD · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
REC Limited announced the incorporation of Rajgarh Neemuch Power Transmission Limited on June 17, 2025, as a wholly owned subsidiary of REC Power Development and Consultancy Limited (RECPDCL), which is itself a wholly owned subsidiary of REC. The new company has an authorized and paid-up capital of ₹5 lakh and has been set up to handle the transmission system for evacuating power from renewable energy projects — 1500 MW in Rajgarh SEZ (Phase III) and 1000 MW in Neemuch SEZ (Phase II), both in Madhya Pradesh. The project was allocated to RECPDCL by the Ministry of Power via a Gazette Notification dated March 18, 2025, making it the Bid Process Coordinator. Under the Tariff Based Competitive Bidding (TBCB) framework, this newly formed SPV will eventually be transferred to the successful bidder along with all assets and liabilities.
This is a routine procedural step to create a Special Purpose Vehicle (SPV) for a power transmission project that will be auctioned off to a private bidder. The capital outlay is negligible (₹5 lakh) and the subsidiary will be transferred away, so there is no material impact on REC's earnings or stock price.