REC forms eight SPVs for interstate transmission projects
The board of REC Ltd has approved the establishment of eight special purpose vehicles (SPVs) for the development of interstate transmission system (ISTS) schemes. In a stock exchange filing, REC stated that the board, during a meeting on September 30, 2024, authorized the formation of these SPVs as wholly-owned subsidiaries of REC Power Development & Consultancy Ltd (RECPDCL), which is itself a wholly-owned subsidiary of REC Ltd.
These SPVs will serve as shell companies for the ISTS schemes, with RECPDCL designated as the bid process coordinator (BPC). As the BPC, RECPDCL will be responsible for selecting the developer or transmission service provider (TSP) for these projects under the tariff-based competitive bidding (TBCB) mechanism. The selected developers will later receive the project SPVs.
The eight ISTS schemes include:
- Transmission scheme for evacuation of power from Ratle HEP (850 MW) and Kiru HEP (624 MW): Part-A
- Network Expansion scheme in Western Region for pumped storage potential near Talegaon (Pune)
- Transmission system for augmenting transformation capacity at the 765/400kV Lakadia Substation (WRSS XXI (A) Transco Ltd) in Gujarat – Part B
- Transmission system for evacuation of power from Rajasthan REZ Phase-V (Part-I: 4 GW) [Sirohi/Nagaur] Complex
- Augmentation of transformation capacity at Banaskantha (Raghanesda) PS (GIS)
- Augmentation of transformation capacity at KPSI (GIS) and KPS2 (GIS) (Phase-V, Part B1 and Part B2)
- Transmission system for the proposed Green Hydrogen/Green Ammonia project in the Tuticorin area
- Augmentation of transformation capacity by 3×500 MVA, 400/220 kV ICTs (6th–8th) and 1×1500 MVA, 765/400 kV ICT (4th) at Bidar PS
As of October 1, 2024, RECPDCL has commenced the bidding process for five of the eight schemes (#1, #3, #4, #5, and #6), while the bidding for the remaining three (#2, #7, and #8) has not yet begun.