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REC Limited Forms Subsidiary for Power Evacuation in Madhya Pradesh

The subsidiary entity "Rajgarh III Power Transmission Limited" has been established as a transmission system dedicated to evacuating power from renewable energy projects
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Maharatna PSU REC Limited announced on Wednesday the formation of a new subsidiary for the evacuation of power from renewable energy projects in Madhya Pradesh. The newly incorporated entity, Rajgarh III Power Transmission Limited, has been established as a wholly-owned subsidiary of REC’s arm, REC Power Development and Consultancy Limited (RECPDCL), according to an exchange filing by REC.

Rajgarh III Power Transmission Limited will serve as a transmission system dedicated to evacuating power from renewable energy projects located in the Rajgarh (1500 MW) Special Economic Zone (SEZ) in Madhya Pradesh under Phase III. The company is a related party of REC Limited, but neither the promoter nor any of the promoter group companies have any ownership interest in the new entity, except for its shareholding.

Following the selection of a successful bidder in line with the Tariff Based Competitive Bidding (TBCB) guidelines, the transmission system and its associated assets and liabilities will be transferred to the successful bidder, REC said in its filing.

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