Whalesbook
REC Limited has officially incorporated three new wholly-owned subsidiaries to advance its power transmission projects. The company has allocated ₹5 crore in capital to each of these new entities, bringing the total investment to ₹15 crore.
The three subsidiaries are: Bhadla Ramgarh Power Transmission Limited, Lakadia II Power Transmission Limited, and Jam Khambhaliya Jamnagar Power Transmission Limited. Bhadla Ramgarh was incorporated on May 8, 2026, while Lakadia II and Jam Khambhaliya were incorporated on May 9, 2026.
These subsidiaries will focus on developing inter-state power transmission projects. These projects are linked to a gazetted notification issued on February 12, 2026, for project allocation. Specific capacities include 7.5 GW for Lakadia II, 5.5 GW for Jam Khambhaliya, and 1 GW for Jamnagar.
This expansion is critical for enhancing REC's footprint in the power transmission sector. The initiatives are designed to facilitate the evacuation of renewable energy, bolster the national grid, and support India's ambitious clean energy targets.
REC, a key public sector financier in India's power industry, typically uses Special Purpose Vehicles (SPVs) for project execution. This approach streamlines large-scale infrastructure development and prepares projects for transfer to successful bidders through competitive bidding.
The establishment of these dedicated legal entities signifies REC's increased operational role in project development, even though the subsidiaries may serve as temporary holding structures. The move is aimed at creating greater capacity for renewable energy transmission via improved grid connectivity.
These newly formed subsidiaries are slated for transfer to developers selected through the Tariff Based Competitive Bidding (TBCB) process. Consequently, REC's direct ownership of these specific project entities is expected to be short-term.
REC's strategic expansion in transmission development mirrors activities seen among its peers. Companies like Power Grid Corporation of India Ltd (PGCIL) consistently work to expand the national grid capacity, while Adani Transmission Ltd actively grows its private transmission network.
Looking ahead, attention will be on the timeline and outcomes of the TBCB process for these projects, the selection of successful bidders, and the subsequent development progress of the transmission capacities. REC's role post-transfer will also be a point of interest.