The board of state-owned REC Ltd. has approved the sale and transfer of a special-purpose vehicle, WRSR Power Transmission Ltd., to Adani Transmission Ltd.
Adani Transmission was selected through a tariff-based competitive bidding process for the project, according to REC Ltd.
WRSR Power Transmission is presently held by REC Power Development and Consultancy Ltd. (RECPDCL), a wholly-owned subsidiary of REC.
The process for the sale and transfer of the SPV to Adani Transmission is expected to be completed during the current financial year.
REC is a power infrastructure public sector undertaking under the power ministry. It finances and promotes various electricity transmission projects in the country.
The board of REC at its meeting on December 5, 2022, had approved setting up a project-specific special purpose vehicle as a wholly owned subsidiary of RECPDCL for the transmission project North Eastern Region Expansion Scheme-XVI (NERES-XVI).
The board had also approved the sale of MP Power Transmission Package-I held by RECPDCL to Megha Engineering and Infrastructures.
Adani Transmission is the largest private transmission and distribution company in the country. Incorporated in 2006, the company currently holds a portfolio of 18,795 circuit kilometre (ckm) of transmission lines and 40,001MVA of power transformation capacity across 13 states in India.
Adani Transmission on December 28, 2022, incorporated a wholly-owned subsidiary, BEST Smart Metering (BSML), to undertake the smart meter business.
Shares of REC Ltd. are trading 1.85 percent higher at Rs 118.65, while Adani Transmission shares are trading 0.62 percent higher at Rs 2,605.25.
