New Delhi: REC Limited's Board of Directors has approved the incorporation 12 project-specific Special Purpose Vehicles (SPVs) for the execution of inter-state transmission projects allocated to its subsidiary REC Power Development & Consultancy Ltd (RECPDCL) by the Ministry of Power. The decision was taken at a board meeting held on Friday to approve the financial results for Q3 of FY22. These SPVs will function as wholly-owned subsidiaries of RECPDCL and REC Limited.
In a regulatory filing to the stock exchanges, REC said, "… this is to inform that the Board of Directors of REC Limited, in its meeting held on February 4, 2022, inter-alia also approved the following… Incorporation of twelve (12) project-specific special purpose vehicles (as per Annexure I enclosed), as wholly owned subsidiaries of REC Power Development & Consultancy Limited (RECPDCL), for development of inter-state transmission projects allocated by Ministry of Power, Government of India."
The 12 SPVs have been incorporated for the implementation of 12 transmission projects. Out of 12, four are transmission schemes for evacuation of Renewable Energy (RE) from Part A, B, C and D of Khavda PS under Phase II. Two SPVs are for the establishment of Khavda Pooling Stations 1 and 2 in Khavda RE Park. One SPV is for setting up transmission scheme for injection beyond 3 MW RE power at Khavda PS1.
In addition, the other SPVs are for the development of transmission system for evacuation of power from Neemuch SEZ, transmission system for evacuation of power from REZ in Rajasthan (20 GW) under Phase-III Part CI, Part D and Part F and for transmission network expansion in Gujarat associated with integration of RE projects from Khavda potential RE zone.
The board has also approved the "Sale and transfer of Gadag Transmission Limited to ReNew Transmission Ventures Private Limited, the successful bidder selected through tariff based competitive bidding process," said REC. The process for sale is expected to be complete in 2021-22.
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