REC Ltd announced that it has incorporated Rajasthan IV 4B Power Transmission Limited as the wholly owned subsidiary of REC Power Development & Consultancy Limited (RECPDCL), which itself is a wholly owned subsidiary of REC Ltd.
The new entity has been formed following a directive from the Ministry of Power which through a gazette notification dated June 14, 2024 had allocated one transmission project, wherein RECPDCL has been appointed to act as Bid Process Coordinator (BPC) for the purpose of selection of Bidder for Transmission system for evacuation of 3.5 GW of power from Rajasthan REZ Ph-IV, Part B.
In a regulatory filing, the company said that after the selection of the successful bidder in accordance with the Tariff Based Competitive Bidding (TBCB) guidelines, said company would be transferred to the successful bidder along with all assets and liabilities. Initially, the newly incorporated company will remain under ownership of REC Ltd.
The subsidiary, REC Ltd said, has been set up with an authorised and paid-up capital of Rs 5,00,000. In terms of objectives, the company said that the subsidiary has been incorporated for the transmission system for evacuation of power from Rajasthan REZ PhIV (Part-4: 3.5 GW): Part B.
Earlier, the company had reported a growth of 16 per cent year-on-year profit for the first quarter of FY25, reaching at Rs 4,326 crore.
Earlier in May, REC stated that it plans to increase its portfolio in lending to the renewable energy sector to 30 per cent from the current 10 per cent by 2030. Moreover, it plans to double its assets under management to Rs 10 trillion by 2030 with both conventional-energy and RE projects forming the major part of it, Chairman and Managing Director Vivek Kumar Dewangan had told FinancialExpress.