REC Board Approves Incorporation of 7 SPVs for Evacuating Renewable Energy

The board members of India’s power sector lender REC Ltd have provided their consent for a proposal to incorporate 7 project-specific special purpose vehicles (SPVs).

These SPVs will facilitate the evacuation of renewable energy from Maharashtra, Madhya Pradesh, Karnataka and Rajasthan.

REC said that “The board of directors of REC Ltd in its meeting held on March 25, 2020, inter-alia approved the proposal for incorporation of seven project-specific special purpose vehicles (SPVs) as wholly-owned subsidiaries of REC Transmission Projects Company Ltd (RECTPCL), a wholly-owned subsidiary of REC.”

RECTPCL auctions these seven transmission projects, which are allocated by the power ministry, and hands over the incorporated entities to the successful bidders for the development and operation.

Further, the 7 SPVs include:-

• Transmission system for evacuation of power from RE projects in Osmanabad area (1 GW) in Maharashtra.
• Transmission system for evacuation of power from RE projects in Rajgarh (2,500 MW) SEZ in Madhya Pradesh.
• Transmission Scheme for Solar Energy Zone in Gadag (2,500 MW), Karnataka – Part A
• Transmission Scheme for Solar Energy Zone in Bidar (2,500 MW), Karnataka.
• Transmission system strengthening scheme for the evacuation of power from solar energy zones in Rajasthan (8.1 GW) under Phase II -Part A.
• Transmission system strengthening for the evacuation of power from solar energy zones in Rajasthan (8.1 GW) under Phase II -Part B.
• Transmission system strengthening scheme for the evacuation of power from solar energy zones in Rajasthan (8.1 GW) under phase-II- Part C.

REC further added that the companies to be incorporated will also be the wholly-owned subsidiary companies of REC Ltd as per provisions of Section 2(87) of the Companies Act.