New Delhi: REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, has announced the incorporation of a wholly-owned subsidiary, Mekhali Power Transmission Limited, marking a strategic step in expanding its role in intra-state power transmission infrastructure development.
The new entity has been incorporated through REC’s wholly-owned arm, REC Power Development and Consultancy Limited (RECPDCL). The announcement was made via a regulatory filing to the stock exchanges on Tuesday.
According to the filing, Mekhali Power Transmission Limited has an authorised and paid-up capital of ₹5 lakh and is currently in the pre-operational phase. The company has been set up to serve as a special purpose vehicle (SPV) for implementing a transmission project in Belagavi district, Karnataka, comprising a 400 kV substation at Mekhali and its associated transmission lines.
Mandate from Karnataka Government
The incorporation follows an allocation by the Energy Department of the Government of Karnataka, which, through an order dated 4 March 2025, appointed RECPDCL as the Bid Process Coordinator (BPC) for the project. This appointment authorizes RECPDCL to oversee the entire bidding process under the Tariff-Based Competitive Bidding (TBCB) framework.
Once the bidding process is complete and a successful bidder is selected, the entire shareholding of Mekhali Power Transmission Limited—along with its assets and liabilities—will be transferred to the winning bidder. This aligns with standard protocol for transmission projects executed under the TBCB route, ensuring competitive and transparent allocation of infrastructure development responsibilities.
Corporate Structure and Related Party Disclosure
REC Limited clarified that Mekhali Power Transmission Limited qualifies as a related party, being a wholly-owned subsidiary of RECPDCL, which in turn is fully owned by REC. However, the filing also stated that the promoter group has no interest in the entity beyond its shareholding, thereby maintaining transparency and adherence to corporate governance norms.
Strategic Significance
This move reinforces REC’s commitment to supporting India’s power sector reforms and the development of robust transmission infrastructure at the intra-state level. The project is expected to improve power evacuation and distribution capabilities in Karnataka, particularly in the Belagavi region, facilitating more efficient power delivery and grid stability.
With REC’s growing portfolio in transmission and consultancy services, the establishment of Mekhali Power Transmission Limited highlights the company’s proactive role in accelerating infrastructure development in line with national energy goals.
