REC board approves subscription of 50 per cent equity shareholding in asset management firm PFC Projects Limited

REC Limited’s board has approved a proposal for subscribing 50 per cent equity not exceeding Rs 500 million in PFC Projects Limited, a power asset management company for taking over stressed assets.

PFC Projects is a 50:50 joint venture company with the Power Finance Corporation Limited (PFC) for taking over stressed/non-performing asset (NPA) in the power sector, subject to requisite approvals. The board also approved the proposal for the sale and transfer of Neemuch Transmission Limited to Power Grid Corporation of India Limited, the successful bidder selected through a tariff-based competitive bidding (TBCB) process. The board also approved the incorporation of a project-specific special purpose vehicles (SPVs), as wholly-owned subsidiaries of REC Power Development and Consultancy Limited (RECPDCL), for the selection of successful bidders for the implementation of three projects allocated by the Ministry of Power through TBCB process. The first SPV will be for inter-state transmission system network expansion scheme in western and southern regions for export of surplus power during high 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 Eastern Region-Western Region interconnection.