New Delhi: State-owned REC Ltd board has approved a proposal for subscribing 50 per cent equity not exceeding Rs 50 crore in PFC Projects, a power asset management company for taking over stressed assets.

As per a BSE filing, PFC Projects is a 50:50 joint venture company with the PFC for taking over stressed/NPA (bad loan) assets in the power sector, subject to requisite approvals.

The REC board in a meeting on August 4, 2022, approved a proposal for the subscription of 50 per cent equity shareholding not exceeding Rs 50 crore in PFC Projects Ltd (in the Power Asset Management Company), the filing said.

The board also approved the proposal for the sale and transfer of Neemuch Transmission Limited to Power Grid Corporation of India Ltd, the successful bidder selected through a tariff-based competitive bidding process.

The board also approved the incorporation of a project-specific special purpose vehicle (SPV), as a wholly-owned subsidiary of REC Power Development & Consultancy Limited (RECPDCL), for the selection of successful bidders for the implementation of the three projects allocated by the Ministry of Power through a tariff-based competitive bidding process.

Firstly, it would be for ISTS (Inter-state transmission system) in Network Expansion Scheme in western and southern regions for export of surplus power during high RE (renewable energy) scenario in the southern region.

The second SPV will be for the transmission system for evacuation of power from the Luhri Stage-I hydroelectric project and the third will be for Inter-regional ER-WR (Eastern Region-Western Region) Interconnection.