REC to incorporate 5 SPVs as wholly owned subsidiaries

The board of directors of REC Limited approved the proposal for incorporation of five protect specific special purpose vehicles (SPVs), as wholly owned subsidiary companies of REC Transmission Projects Company.

Feb 11, 2019 10:02 IST India Infoline News Service

The board of directors of REC Limited approved the proposal for the incorporation of five protect specific special purpose vehicles (SPVs), as wholly owned subsidiary companies of REC Transmission Projects Company Limited.

The company made the announcement on Friday afternoon, post market hours. Despite the news, shares of the company lost ~1.5% in early morning trade on Monday.

The approval has been obtained for the construction of following 5 projects:
  1. Transmission system strengthening for relieving over loadings observed in Gujarat Intra state system due to RE injections in Bhuj PS
  2. Transmission system associated with RE generations at Bhuj —Il, Dwarka & Lakadia
  3. Construction of Ajmer (PG)-Phagi 765kV D/ C line aIong with associated bays for Rajasthan SEZ
  4. Jam Khambhaliya Pooling Station and Interconnection of Jam Khambhaliya Pooling Station for providing connectivity to RE projects (1,500MW) in Dwarka (Gujarat) and installation of 400/220 kY lCT along with associated bays at M/s CGPL Switchyard
  5. Transmission system associated with L.TA applications from Rajasthan SEZ Part C
The companies to be incorporated will also be subsidiary companies of REC Limited in terms of the provisions of Section 2 (87) of the companies Act, 2013.

REC Limited (REC) (Formerly Rural Electrification Corporation Limited) is a public Infrastructure Finance Company in India’s power sector. It finances and promotes rural electrification projects across India. The company provides loans to central/state sector power utilities in the country, State Electricity Boards, Rural Electric Cooperatives, NGOs, and Private Power Developers. 

REC Ltd is currently trading at Rs117.45 down by Rs0.55 or 0.47% from its previous closing of Rs118 on the BSE.

The scrip opened at Rs120 and has touched a high and low of Rs120.05 and Rs116.85 respectively. So far 16,58,387 (NSE+BSE) shares were traded on the counter.

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