REC Ltd Incorporates Bhadla-III Power Transmission Limited as Wholly Owned Subsidiary

On April 20, 2024, REC Ltd informed the stock exchanges that the company had incorporated a new subsidiary company in the power sector.

Details of the Wholly Owned Subsidiary

REC Ltd stated in a stock exchange filing that Bhadla-III Power Transmission Limited had been incorporated as a wholly owned subsidiary of REC Power Development & Consultancy Limited, which is a wholly-owned subsidiary of REC Limited.

Bhadla-III Power Transmission Limited has been incorporated with an authorised capital of ₹5,00,000 and paid up capital of ₹5,00,000.

The company added that the Central Electricity Authority, under the Ministry of Power, assigned a transmission project via a letter dated February 16, 2024. REC Power Development & Consultancy Limited was designated as the Bid Process Coordinator (BPC) to oversee the selection of a bidder for the Additional Transmission system to evacuate power from Bhadla-III PS as part of the Rajasthan REZ Phase-III scheme (20 GW).

To fulfill this, Bhadla-III Power Transmission Limited was incorporated on April 19, 2024. After the selection of the successful bidder in accordance with the Tariff Based Competitive Bidding (TBCB) guidelines, the company would be transferred to the successful bidder along with all assets and liabilities.

Earlier this month, REC Power Development & Consultancy Limited transferred the entire shareholding of 50,000 equity shares in M/s Meerut Shamli Power Transmission Limited to Megha Engineering & Infrastructures Limited, the successful bidder, selected through tariff based competitive bidding process. Therefore, Bhadla-III Power Transmission Limited will be another such company for REC Power Development & Consultancy Limited.

About REC Ltd

REC Ltd is a Central Public Sector Undertaking under the Ministry of Power that finances projects across the complete power sector value chain, from generation to distribution. In Q3 FY 2024, REC Ltd reported a total income of ₹11,981.65 crore and a net profit of ₹3,269.31 crore.

On April 22, 2024, the share price of REC Ltd opened at ₹427.40, touching the day’s high at ₹434.45, as of 9:42 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.