New Delhi: REC Power Development and Consultancy Limited (RECPDCL), a wholly owned subsidiary of REC Limited, has transferred Nawada Durgapur Power Transmission Limited, a project-specific Special Purpose Vehicle (SPV), to Shivalaya Construction Limited. The transaction was completed on October 16, 2026, following receipt of the required financial consideration.
RECPDCL is a wholly owned subsidiary of REC Limited, a Maharatna Central Public Sector Undertaking (CPSU) under the Ministry of Power, Government of India. The transfer marks the handover of the project-specific transmission entity to the successful bidder selected through a competitive bidding process.
RECPDCL Transfers Transmission SPV to Shivalaya Construction
The SPV was handed over by Rajkumar Sonkar, Head of Department (Company Secretary), RECPDCL, to Rajesh Kumar Singh, Head (Power and Transmission), Shivalaya Construction Limited. Senior officials from RECPDCL, Shivalaya Construction Limited and Central Transmission Utility of India Limited were present during the handover.
Shivalaya Construction Limited emerged as the successful bidder through the Tariff-Based Competitive Bidding (TBCB) process conducted by RECPDCL in its capacity as the Bid Process Coordinator.
The project involves the development of the inter-state transmission project “ERES-47: Nawada–Durgapur–Jeerat (New) 765 kV Corridor” on a Build, Own, Operate and Transfer (BOOT) basis.
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REC Subsidiary Transfer Completed for ₹18.44 Crore
As part of the transaction, RECPDCL transferred its entire shareholding of 50,000 equity shares in Nawada Durgapur Power Transmission Limited to Shivalaya Construction Limited. The Share Purchase Agreement between RECPDCL and the successful bidder was executed on October 16, 2026.
The total consideration received for the transaction was ₹18,44,62,442, or approximately ₹18.45 crore, inclusive of applicable taxes.
The amount includes the acquisition price, professional fees and reimbursement of expenses associated with the transfer.
Following the completion of the transaction, Nawada Durgapur Power Transmission Limited ceased to be a subsidiary of both RECPDCL and REC Limited. Shivalaya Construction Limited acquired the SPV along with its corresponding assets and liabilities, as specified in the transfer arrangements.
Transmission Project Awarded Through Competitive Bidding
The Nawada–Durgapur–Jeerat (New) 765 kV corridor is an inter-state power transmission project being developed under the BOOT model.
Under this model, the selected developer is responsible for building, owning and operating the transmission infrastructure before transferring it in accordance with the applicable project arrangements.
The TBCB process conducted by RECPDCL enabled the selection of Shivalaya Construction Limited as the successful bidder for the project. The transfer of the SPV completes the ownership handover associated with the project-specific transmission entity.
REC Limited Clarifies Transaction Details
REC Limited clarified that Shivalaya Construction Limited does not belong to its promoter or promoter group. The transaction has also not been classified as a related-party transaction.
The company further stated that the transfer was not structured as a slump sale. The transaction valuation was determined in accordance with the applicable guidelines issued by the Ministry of Power, Government of India.
These disclosures outline the nature of the transaction and the basis on which the transfer of the project-specific subsidiary was completed.
Limited Financial Impact Expected on REC Limited
According to REC Limited’s disclosure, Nawada Durgapur Power Transmission Limited made a negligible contribution to the company’s turnover, revenue, income and net worth during the preceding financial year.
Consequently, the divestment is not expected to have a significant impact on REC Limited’s overall financial performance, considering the subsidiary’s reported contribution.
The transfer forms part of the process of handing over the project-specific transmission entity to the successful bidder selected through competitive bidding, enabling Shivalaya Construction Limited to take ownership of the SPV and its associated assets and liabilities.
About REC Power Development and Consultancy Limited (RECPDCL)
REC Power Development and Consultancy Limited (RECPDCL) is a wholly owned subsidiary of REC Limited, a Maharatna Central Public Sector Undertaking under the Ministry of Power, Government of India. RECPDCL undertakes power-sector consultancy and facilitates the development of transmission projects, including the conduct of tariff-based competitive bidding processes for selecting project developers.
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