REC Ltd has announced the establishment of Rajasthan IV 4B Power Transmission Limited as a wholly-owned subsidiary of RECPDCL, which is itself a wholly-owned subsidiary of REC Ltd. This new entity was created following a directive from the Ministry of Power, which issued a gazette notification on June 14, 2024.
The notification allocated a transmission project to RECPDCL, appointing it as the Bid Process Coordinator (BPC) for selecting a bidder for a transmission system designed to evacuate 3.5 GW of power from Rajasthan REZ Phase IV, Part B.
According to a regulatory filing, once a successful bidder is chosen in line with the Tariff Based Competitive Bidding (TBCB) guidelines, the new company, along with its assets and liabilities, will be transferred to the selected bidder. Initially, the company will retain ownership of the newly formed subsidiary, which has an authorized and paid-up capital of Rs 5,00,000.
The subsidiary’s primary objective is to manage the transmission system for power evacuation from Rajasthan REZ Phase IV, Part B (3.5 GW). REC Ltd previously reported a 16 percent increase in profit year-on-year for the first quarter of FY25, reaching Rs 4,326 crore.
In May, the company outlined its plan to boost its renewable energy lending portfolio to 30 percent by 2030, up from the current 10 percent. Additionally, the company aims to double its assets under management to Rs 10 trillion by 2030, with both conventional and renewable energy projects being key components, as noted by Chairman and Managing Director Vivek Kumar Dewangan.
REC Ltd is a leading financial institution in India specializing in financing power sector projects. As a key player in the renewable energy and conventional energy sectors, REC Ltd provides funding and consultancy services for infrastructure development. The company aims to expand its renewable energy portfolio and increase assets under management, driving growth and sustainability in the energy sector.
