REC Limited has completed the transfer of its wholly-owned subsidiary, Nawada Durgapur Power Transmission Limited, to Shivalaya Construction Limited for Rs 18.45 crore. This divestment follows the standard tariff-based competitive bidding process regularly employed by REC’s subsidiary, RECPDCL. As the SPV held a negligible impact on the company's overall financials, this transaction represents a routine operational milestone in REC’s project development lifecycle rather than a material shift in business strategy.
REC Completes Sale of Power Transmission SPV
Total Consideration: Rs 18.45 Crore
Transaction Date: October 16, 2026
Reader Takeaway: This routine asset divestment follows standard competitive bidding practices and has no material impact on company financials.
What just happened
REC Limited, acting through its subsidiary REC Power Development and Consultancy Limited (RECPDCL), has successfully transferred the entire shareholding of its special purpose vehicle (SPV), Nawada Durgapur Power Transmission Limited, to Shivalaya Construction Company Limited. The transaction involved the handover of 50,000 equity shares along with all associated assets and liabilities. The transfer was concluded on October 16, 2026, following the receipt of the total consideration of Rs 18.45 crore.
Why this matters
For investors, this event signifies the successful execution of REC’s project-finance model. The company frequently acts as an incubator for power transmission projects, housing them in specific SPVs. Once these projects reach a mature stage, the SPVs are transferred to the successful bidder identified through a tariff-based competitive bidding process. This cycle allows REC to recycle capital and focus on its primary role as a financier and developer in the power sector.
Financial and Regulatory Context
REC Limited has confirmed that the SPV held a negligible portion of the company's total turnover, revenue, and net worth. The transaction has been executed at arm's length, with the company confirming that Shivalaya Construction is not related to the promoter or promoter group. Furthermore, the transfer is not categorized as a 'slump sale,' and the consideration includes all acquisition prices, taxes, and professional fees incurred during the process.
What to track next
Investors should view this as a routine operational update. Future progress on similar SPV divestments remains part of the company's standard business model and does not change the broader investment thesis regarding REC’s core financial performance or loan book quality.