REC Ltd Completes Sale of Two Transmission SPVs for Rs 36.83 Crore

Total consideration for the transaction reached Rs 36.83 crore. The transfer of the two special purpose vehicles (SPVs) was finalized on October 12, 2026.

Reader Takeaway: REC successfully executes its bid coordinator model with no material impact on its core financial strategy.

What just happened

REC Limited, acting through its subsidiary REC Power Development and Consultancy Limited (RECPDCL), has officially transferred two power transmission SPVs. Jam Khambhaliya Jamnagar Power Transmission Ltd was acquired by Ceigall India Limited for approximately Rs 18.40 crore. Simultaneously, Lakadia II Power Transmission Ltd was transferred to the Power Grid Corporation of India Limited for Rs 18.43 crore. These transfers were conducted through the established tariff-based competitive bidding (TBCB) process.

Why this matters

RECPDCL operates as a bid process coordinator for the power transmission sector. This transaction represents the successful completion of the project lifecycle for these specific SPVs. Once the bidding process is concluded and the successful operator is selected, the SPV is handed over to the winner. For investors, this event confirms the operational efficiency of the TBCB model and the subsidiary's role in facilitating power infrastructure development.

Transaction Compliance

REC Limited clarified that the valuation of these SPVs was determined according to Ministry of Power guidelines. The company emphasized that this transaction does not constitute a slump sale. Furthermore, REC confirmed that neither Ceigall India nor Power Grid Corporation belongs to the promoter or promoter group, and the transfer does not qualify as a related-party transaction.

What to track next

Shareholders should note that this divestment is a standard operational procedure. While it brings in cash inflow, it does not represent a significant shift in the parent company's core business or a material financial impact on its balance sheet.