REC Limited Announces Incorporation of Rajasthan IV 4B Power Transmission Ltd

REC Limited informed in a stock exchange filing that the company’s wholly-owned subsidiary, REC Power Development & Consultancy Limited (RECPDCL), has incorporated a wholly-owned subsidiary, Rajasthan IV 4B Power Transmission Limited.

The new company was officially incorporated on August 14, 2024. It is established with an authorised and paid-up capital of ₹5,00,000 each.

The creation of Rajasthan IV 4B Power Transmission Limited follows a recent development in the power sector. On June 14, 2024, the Ministry of Power issued a gazette notification allocating a transmission project for the evacuation of power from the Rajasthan Renewable Energy Zone (REZ) Phase-IV (Part-4: 3.5 GW), specifically, Part B. RECPDCL has been designated as the Bid Process Coordinator (BPC) for this project, which involves selecting a bidder for the transmission system.

As the Bid Process Coordinator, RECPDCL oversees the competitive bidding process for the transmission project. This process is conducted under the Tariff Based Competitive Bidding (TBCB) guidelines, which ensure a transparent and competitive selection of the Transmission Service Provider (TSP). Once the successful bidder is chosen, Rajasthan IV 4B Power Transmission Limited, along with all its assets and liabilities, will be transferred to the selected bidder.

Rajasthan IV 4B Power Transmission Limited will play a crucial role in the power sector, particularly in enhancing the infrastructure for transmitting power from Rajasthan’s REZ. The project is part of a broader initiative to bolster transmission capacity and facilitate the efficient evacuation of renewable energy.

RECPDCL’s role extends beyond this project. It regularly acts as the Bid Process Coordinator for various transmission projects assigned by the Ministry of Power and state governments. This includes both inter-state and intra-state transmission projects, underscoring RECPDCL’s significant role in advancing India’s power infrastructure.

On August 16, 2024, the share price of REC Ltd opened at ₹572.20, touching the day’s high at ₹577.50, as of 10:23 AM on the NSE.

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