New Delhi: In a move aimed at strengthening renewable energy transmission infrastructure in India, REC Limited – a Maharatna Central Public Sector Enterprise under the Ministry of Power – has announced the incorporation of a new wholly owned subsidiary, Rajgarh Neemuch Power Transmission Limited.
The subsidiary has been formed under REC Power Development and Consultancy Limited (RECPDCL), a 100% subsidiary of REC. This development follows the Ministry of Power’s allocation of a significant interstate transmission system project, notified in the Gazette on March 18, 2025.
Boost to Renewable Energy Evacuation
Rajgarh Neemuch Power Transmission Limited will be responsible for implementing transmission systems for the evacuation of 2,500 MW of renewable energy—1,500 MW from Rajgarh SEZ (Phase III) and 1,000 MW from Neemuch SEZ (Phase II) in Madhya Pradesh. These initiatives are part of the Centre’s broader strategy to integrate more clean energy into the national grid through effective inter-state connectivity.
TBCB and Transfer to Private Operator
The project is being developed under the Tariff-Based Competitive Bidding (TBCB) mechanism, with RECPDCL serving as the Bid Process Coordinator (BPC). Once the bidding process concludes and a successful Transmission Service Provider (TSP) is selected, the new company will be transferred to that bidder, along with its assets and liabilities.
The company has been incorporated with an authorised and paid-up capital of ₹5 lakh, and operations have not yet commenced. REC has clarified that while this is a related-party transaction due to subsidiary linkage, no promoter or promoter group interest exists beyond the shareholding structure.
Key Strategic Initiative
This move reflects REC’s continued commitment to enabling India’s renewable energy ambitions, particularly in Special Economic Zones designed for clean energy. By setting up dedicated transmission corridors, the company is facilitating faster grid integration of renewable power and supporting decarbonization goals.
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About REC
REC Limited (formerly Rural Electrification Corporation Limited) is a Maharatna Central Public Sector Undertaking (CPSU) under the Ministry of Power, Government of India. Established in 1969, REC is a leading non-banking financial company (NBFC), playing a pivotal role in financing and promoting power sector development across India.
