REC transfers Khetri Transco (SPV) to Power Grid Corporation of India

REC announced that the entire shareholding of REC Transmission Projects Company (RECTPCL), wholly owned subsidiary of REC in Khetri Transco, comprising of 50,000 equity shares, have been transferred along with all its assets and liabilities on 29 August 2019, to Power Grid Corporation of India , the successful bidder selected through Tariff Based Competitive Bidding Process, for development of Transmission system associated with LTA application from Rajasthan SEZ (Part-C).

In terms of the Guidelines/directions issued, from time to time, by the Ministry of Power, Government of India, RECTPCL has received a consideration of Rs 16.64 crore, comprising of Rs16.01 crore (including GST) towards Professional Fee for Bid Process Coordination, Rs 0.05 crore towards cost of acquiring 50,000 equity shares of Rs 10/- each of Khetri Transco Limited at par value and balance amount towards reimbursement of expenditure incurred on the project by RECTPCL and interest cost etc., from the successful Bidder. Further, contribution of the aforesaid SPV to the turnover or revenue or income and net worth of REC, during the last financial year was negligible.

 

Hence, with effect from the aforesaid date, the above Project Specific SPV is not subsidiary of RECTPCL & REC.

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