New Delhi: In a move to strengthen India’s power transmission infrastructure, REC Limited (NSE: RECLTD, BSE: 532955), a Maharatna Central Public Sector Enterprise under the Ministry of Power, has announced the incorporation of two wholly owned subsidiaries — WR ER Part C Power Transmission Limited and WR ER Part A Power Transmission Limited.
Each subsidiary has been incorporated with an authorized and paid-up capital of ₹5,00,000 and will play a key role in advancing inter-regional connectivity under the WR-ER Inter-Regional Network Expansion Scheme.
Project Background
The establishment of these subsidiaries follows a Gazette Notification issued by the Ministry of Power, Government of India, on September 18, 2025.
The notification allocated inter-state transmission projects to REC Power Development and Consultancy Limited (RECPDCL), a wholly owned subsidiary of REC Limited, for implementation under the Tariff-Based Competitive Bidding (TBCB) framework.
Role of RECPDCL
As the Bid Process Coordinator (BPC) for the project, RECPDCL will:
Oversee the selection of qualified bidders for the establishment of transmission systems under the WR-ER Inter-Regional Network Expansion Scheme.
Manage the TBCB process in accordance with guidelines issued by the Ministry of Power.
This mechanism ensures transparency, competitiveness, and efficiency in the allocation of large-scale power infrastructure projects.
Future Plans
After the successful completion of the bidding process, both newly incorporated companies — WR ER Part C Power Transmission Limited and WR ER Part A Power Transmission Limited — will be transferred to the successful bidders.
The transfer will include all associated assets, liabilities, and contractual rights, thereby facilitating seamless project execution and operationalization of the transmission systems.
Regulatory Compliance
REC confirmed that the incorporation of these subsidiaries aligns with Regulation 30, read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
It also complies with Section 2(87) of the Companies Act, 2013, which governs the establishment and management of subsidiary companies.
Strategic Significance
The creation of these subsidiaries reflects REC’s strategic focus on expanding its footprint in power transmission infrastructure and supporting the Government of India’s mission of a robust, interconnected national grid.
By leveraging its subsidiary RECPDCL’s expertise in power sector consultancy and bid process management, REC continues to play a pivotal role in advancing India’s energy security and transition toward sustainable growth.
About REC Limited
REC Limited (formerly Rural Electrification Corporation Limited) is a leading public sector financial company in India. Established in 1969, REC is one of the largest non-banking financial institutions dedicated to financing the power sector. The company’s operations extend to financing power transmission and distribution, renewable energy, and rural electrification projects, with a strong focus on sustainable development. REC has been a significant player in shaping India’s energy infrastructure and continues to support large-scale projects in the power and infrastructure sectors.
