Bhopal: REC Limited has incorporated a new subsidiary, Rajgarh Neemuch Power Transmission Limited, to oversee a critical interstate power transmission project in Madhya Pradesh.
The subsidiary was formed following a notification issued by the Ministry of Power on 18 March. It will be responsible for the development of transmission infrastructure for evacuating power from two key renewable energy clusters, Rajgarh SEZ (1500 MW, Phase III) and Neemuch SEZ (1000 MW, Phase II).
These zones are part of the government’s larger strategy to enhance grid integration of renewable energy in central India. The project’s development falls under the Tariff-Based Competitive Bidding (TBCB) framework.
Rajgarh Neemuch Power Transmission Limited is a wholly owned subsidiary of REC Power Development and Consultancy Limited (RECPDCL), which in turn is a fully owned arm of REC Limited.
The company has been incorporated with an authorised and paid-up capital of Rs 5 lakh.
As per the standard protocol under the TBCB route, RECPDCL is acting as the Bid Process Coordinator (BPC). After the bidding process concludes, the new entity will be transferred to the selected Transmission Service Provider (TSP), along with its associated assets and liabilities.
Since the company has only recently been incorporated, it has not commenced operations or reported any turnover. REC clarified that the transaction is classified as a related party arrangement, but there is no direct commercial interest held by the promoter group beyond its shareholding structure.
