RECPDCL sells 7 project-specific SPVs to Power Grid, Adani Transmission

New Delhi: State-run RECPDCL, a wholly-owned subsidiary of REC Limited, has announced the sale and transfer of seven project-specific Special Purpose Vehicles (SPVs) to the bidders that won these projects — Power Grid Corporation of India Ltd and Adani Transmission. In a regulatory filing to the stock exchanges on Friday, RECPDCL said that it is transferring one project-specific SPV to Adani Transmission and six to Power Grid. The two companies had been selected as the successful bidders for these seven projects through a tariff-based competitive bidding process.

“The process for sale and transfer of the said SPV to the successful bidder(s) is expected to complete during the financial year 2022-23/2023-24 (sic.),” said RECPDCL.

Sale, transfer of SPVs on direction of govt: RECPDCL

The PSU said that the sale and transfer of SPVs is done on the basis of guidelines issued by the Ministry of Power from time to time. “Further, the consideration for sale & transfer of SPVs is determined in accordance with the Guidelines issued, from time to time, by the Ministry of Power, Government of India,” said the regulatory filing.

“The proposal for sale and transfer of the wholly-owned subsidiary companies of RECPDCL and REC, to the successful bidder as per details given in Point no. 5 above, is not in the nature of slump sale,” it added. A slump sale is where an undertaking is sold without considering the individual values of the assets or liabilities contained within the undertaking.

While RECPDCL is transferring Khavda II-A Transmission Limited to Adani Transmission, Power Grid will get Khavda II-B Transmission Limited, Khavda II-C Transmission Limited, Khavda RE Power Transmission Limited, KPS2 Transmission Limited, KPS3 Transmission Limited and ERWR Power Transmission Limited.

RECPDCL incorporates 2 project-specific SPVs

RECPDCL also announced the incorporation of two project-specific SPVs as wholly-owned subsidiary companies for the selection of bidders as transmission service providers through tariff-based competitive bidding route — the construction of 4001220 kV, 2x500 MVA GIS substation Metro Depot (Greater Noida) and 4001220kV, 2x500 MVA GIS substation Jalpura with associated lines, and the development of transmission system for evacuation of power from REZ in Rajasthan (20 GW) under phase-III, part I.

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