Maharashtra: REC Limited, through its wholly owned subsidiary REC Power Development and Consultancy Limited (RECPDCL), has completed the transfer of its entire stake in Jalna Power Transmission Limited to Maharashtra State Electricity Transmission Company Limited (MSETCL). The transaction was concluded on June 12, 2026, following a tariff-based competitive bidding process and receipt of the full consideration amount.
Stake Transfer Completed After Competitive Bidding Process
The divestment was executed after a structured tariff-based competitive bidding mechanism, ensuring transparency and compliance with government guidelines issued by the Ministry of Power.
RECPDCL completed the transfer upon receipt of the required payment from the successful bidder, MSETCL, marking the formal closure of the transaction.
Details of Shareholding and Transaction Structure
RECPDCL held a total of 50,000 equity shares in Jalna Power Transmission Limited, which functioned as a project-specific special purpose vehicle (SPV).
Key highlights of the transaction include:
- Entire 50,000 equity shares transferred to MSETCL
- Full transfer of assets and liabilities of Jalna Power Transmission Limited
- Share Purchase Agreement executed on the same day as the transfer
- Company ceased to be a subsidiary of both RECPDCL and REC Limited
Following the completion of the deal, Jalna Power Transmission Limited is no longer under the control or ownership of the REC Group.
Acquisition Value and Financial Consideration
The total consideration received from the transaction amounted to ₹3,21,57,839 (₹3.21 crore), inclusive of applicable taxes.
The amount also covers:
- Professional advisory fees
- Reimbursement of transaction-related expenses
REC confirmed that the valuation and transfer process adhered to established regulatory guidelines and sectoral norms.
MSETCL Confirmed as Successful Bidder
MSETCL emerged as the successful bidder through the competitive bidding process. The company is not part of REC’s promoter or promoter group structure.
REC further clarified that the transaction does not qualify as a related-party deal, ensuring full compliance with corporate governance and disclosure requirements.
Strategic Significance of the Transaction
The stake sale aligns with the broader framework of monetisation and structured divestment of transmission assets through SPVs. Such transfers are commonly executed under tariff-based competitive bidding models to encourage efficiency, transparency, and private sector participation in power transmission infrastructure.
About REC Limited and RECPDCL
REC Limited is a leading public sector enterprise focused on financing and promoting power sector development across India, including generation, transmission, and distribution projects.
REC Power Development and Consultancy Limited (RECPDCL) acts as its project development arm, responsible for facilitating bidding processes, developing transmission projects, and managing strategic divestments of SPVs in the power sector.
