REC incorporates SPV for Rajgarh–Neemuch transmission project

REC Power Development and Consultancy Limited (RECPDCL), a wholly owned subsidiary of REC Limited, has incorporated Rajgarh Neemuch Power Transmission Limited as a new special purpose vehicle (SPV) for an inter-state transmission project in Madhya Pradesh. The new SPV was registered on June 17, 2025.

The project is titled “Transmission system for Evacuation of Power from RE Projects in Rajgarh (1500 MW) SEZ in Madhya Pradesh-Phase III and Evacuation of Power from RE Projects in Neemuch (1000 MW) SEZ in Madhya Pradesh-Phase II.” The Ministry of Power had notified RECPDCL as the bid process coordinator (BPC) for the clubbed scheme on March 18, 2025.

The clubbing was initiated after the National Committee on Transmission (NCT), on January 6, 2025, recommended merging the Rajgarh Phase III scheme with the Neemuch Phase II scheme. While RECPDCL was previously coordinating the Rajgarh project, PFC Consulting Ltd (PFCCL) had been handling the Neemuch project. Both were de-notified and restructured under RECPDCL’s scope.

The merged transmission system has an estimated cost of Rs 3,472 crore. It includes 850 circuit km of 400 kilovolt (kV) transmission lines and a new 400/220 kV, 2×500 MVA substation at Handiya. Additional infrastructure will be added at Pachora, Rajgarh, and Neemuch pooling stations. The entire development is located within Madhya Pradesh and is expected to be completed within 24 months from the date of SPV transfer.

The earlier SPV Rajgarh III Power Transmission Ltd, incorporated on December 24, 2024, is now to be struck off. REC took this decision during its board meeting on June 4, 2025. The earlier entity had been set up specifically for the Rajgarh Phase III project but became redundant following the clubbing of the two schemes due to land constraints near the Pachora pooling station.

RECPDCL has already initiated the bidding process for the new clubbed project. Technical bids have been received, and price bids are expected to open on June 23, 2025. The selected bidder will take over the newly incorporated SPV along with all associated assets and liabilities. The transfer is tentatively scheduled for July 12, 2025.

The developer will be required to coordinate with Rewa Ultra Mega Solar Ltd (RUMSL) and other agencies to manage land acquisition and implementation logistics.