REC receives nod from board for amalgamation of subsidiaries

• REC Limited's consolidated profit after tax (PAT) stood at Rs 1,845.3 crore for the quarter ending June 2020

• Its consolidated total income grew by 23.9 percent year-on-year to Rs 8,448.08 crore in Q1 FY2020-21 from Rs 6,819.59 crore in Q1 FY2019-20

New Delhi: State-run REC Limited has received a nod from its Board of Directors on Friday for the amalgamation of its subsidiary REC Transmission Projects Company Limited (RECTPCL) with REC Power Distribution Company Limited (RECPDCL). "This is to inform that the Board of Directors of REC limited, in its Meeting held on August 7, 2020, inter-alia approved the… Revised Scheme of Amalgamation of REC Transmission Projects Company limited ('Transferor Company') with REC Power Distribution Company limited ('Transferee Company'), wholly owned subsidiaries of REC, subject to requisite approvals," REC said in a regulatory filing to the stock exchanges on Friday.

REC subsidiaries

RECPDCL is a wholly-owned subsidiary of REC Limited. It renders expert and value-added consultancy services to power utilities across the country, specifically to 41 Power Distribution Companies (DISCOMs) and four co-operative societies in 27 states across India with a project cost more than Rs 85,000 crore.

The Ministry of Power has appointed RECTPCL, another wholly-owned subsidiary of REC Limited, as Bid Process Coordinator (BPC) for Inter-State Transmission Systems across the country on a tariff-based competitive bidding route. Till date, RECTPCL has been appointed as BPC for 28 large Inter-State Transmission Projects valuing approximately Rs 42,517 crore. So far, RECTPCL has concluded the bidding process of 28 Inter-State Transmission Projects valuing approximately Rs 42,517 crore and four Intra State Transmission Projects of value approximately Rs 4,870 crore have been successfully delivered.

REC posts 22.3% rise in PAT in Q1FY21

REC Limited's consolidated total income grew by 23.9 percent year-on-year to Rs 8,448.08 crore in Q1 FY2020-21 from Rs 6,819.59 crore in Q1 FY2019-20. Net interest income (NII) stood at Rs 2,912.65 crore, registering a growth of 21.2 percent as against Rs 2,402.94 crore it had reported in Q1FY20. Operating profit for Q1FY21 stood at Rs 2,481.61crore, which  was 17.8 percent higher when compared to Rs 2,106.23 crore in Q1FY20.

Consolidated profit after tax (PAT) stood at Rs 1,845.3 crore for the quarter ending June 2020. It grew by 22.3 percent year-on-year in comparison to Rs 1,509 crore it had reported in Q1FY20.

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