New Delhi: In a strategic move aimed at strengthening intra-state power transmission infrastructure in Maharashtra, REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, has announced the incorporation of two new subsidiaries – Umred Power Transmission Limited and Sakoli Power Transmission Limited.
The announcement was made on Monday, July 7, 2025, through a regulatory filing by REC.
Wholly-Owned Subsidiaries to Execute Key Transmission Projects
The newly formed companies are wholly-owned subsidiaries of REC Power Development and Consultancy Limited (RECPDCL), which is itself a wholly-owned subsidiary of REC Limited. These project-specific companies have been incorporated to implement critical intra-state transmission projects in the districts of Nagpur and Bhandara.
The scope of these projects includes the development of 400/220/132 kV substations – one at Umred (Nagpur district) and another at Sakoli (Bhandara district), forming an essential part of Maharashtra’s expanding energy transmission framework.
Capital Structure and Operational Plans
Both Umred and Sakoli Power Transmission Limited were incorporated with an authorised and paid-up capital of ₹5 lakh each. The entities are currently in the pre-operational stage and have not yet commenced business activities.
Bid Process Coordination and Competitive Allocation
RECPDCL has been designated as the Bid Process Coordinator (BPC) for both projects. The transmission assets will be awarded through the Tariff-Based Competitive Bidding (TBCB) mechanism – a model designed to enhance efficiency and transparency in project execution.
Once the bidding process is completed, the respective project-specific companies will be transferred to the selected bidders along with all associated assets and liabilities.
Compliance and Governance
According to the regulatory filing, the incorporations do not involve any related party transactions beyond REC’s direct and indirect equity participation. Additionally, no further governmental or regulatory approvals are required at this stage, streamlining the initiation process.
Driving Regional and National Power Goals
This move underlines REC’s commitment to enhancing India’s power transmission infrastructure, with a focus on regional development in Maharashtra. The projects align with the Government of India’s broader energy goals to modernise transmission systems, reduce losses, and improve grid reliability.
About REC Limited
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.
