REC Limited has informed the Exchange about incorporation of subsidiary company.
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REC Limited has informed exchanges about the incorporation of Mekhali Power Transmission Limited as a wholly owned subsidiary on May 20, 2025. The new company is a step-down subsidiary, set up under REC Power Development and Consultancy Limited (RECPDCL), which is itself a wholly owned subsidiary of REC. The company has an authorized and paid-up capital of ₹5 lakh each. It was incorporated to establish a 400 KV substation at Mekhali along with associated transmission lines in Belagavi District, Karnataka, following a project allocation by the Karnataka government's Energy Department. RECPDCL will act as the Bid Process Coordinator, and after the successful bidder is selected under Tariff Based Competitive Bidding guidelines, the new company will be transferred to that bidder along with all its assets and liabilities.
This is a routine operational activity for RECPDCL, which regularly incorporates special purpose vehicles for transmission projects before handing them over to successful bidders. No material long-term impact on REC's financials or share price is expected, as the subsidiary is essentially a temporary vehicle for project bidding.