In Short : REC Limited has established a new subsidiary specifically for the Rajasthan Power Transmission Project. This move aims to enhance the state’s power infrastructure by improving transmission networks, supporting the integration of renewable energy sources, and bolstering overall grid reliability. The subsidiary will focus on executing the project efficiently, contributing to Rajasthan’s energy development and sustainable growth.
In Detail : REC Limited has formed a new subsidiary, Rajasthan IV 4B Power Transmission Limited, to support power evacuation efforts in Rajasthan’s Renewable Energy Zone, following a recent Ministry of Power directive.
REC Ltd has established a new wholly-owned subsidiary, Rajasthan IV 4B Power Transmission Ltd, as part of its ongoing efforts to enhance power infrastructure in Rajasthan’s Renewable Energy Zone (REZ). The subsidiary was incorporated on August 14, 2024, under REC Power Development & Consultancy Ltd (RECPDCL), itself a wholly-owned subsidiary of REC Ltd.
This new entity has been formed following a directive from the Ministry of Power, which, through a gazette notification dated June 14, 2024, designated RECPDCL as the Bid Process Coordinator (BPC) for the transmission project aimed at evacuating 3.5 GW of power from Rajasthan’s REZ Phase-IV, Part B. The formation of Rajasthan IV 4B Power Transmission Limited is in line with REC’s responsibilities under this mandate.
Initially, the newly incorporated company will remain under REC Ltd’s ownership. The eventual plan is to transfer the company, along with its assets and liabilities, to the successful bidder selected through the Tariff Based Competitive Bidding (TBCB) process.
The subsidiary has been set up with an authorised and paid-up capital of ₹5,00,000. Its primary role will be to facilitate the efficient evacuation of renewable energy generated in Rajasthan’s REZ, contributing to the broader goals of strengthening India’s power transmission network.
This development follows REC Limited’s recent financial results, where the company reported a 16% year-on-year increase in net profit for the first quarter of FY2024-25, reaching ₹4,326 crore. The strong financial performance reflects the company’s steady growth in the power sector, underlining its role in supporting critical infrastructure projects like the Rajasthan REZ transmission initiative.
With the incorporation of Rajasthan IV 4B Power Transmission Limited, REC Ltd continues to fulfill its mandate in the power sector, particularly in the renewable energy space. The company’s focus remains on ensuring that power generated in key renewable zones is efficiently transmitted to meet the growing energy demands of the country.
