Mumbai, India |India’s leading power sector financier, REC Limited, has announced the successful transfer of two power transmission Special Purpose Vehicles (SPVs) through its wholly owned subsidiary, REC Power Development and Consultancy Limited (RECPDCL). The transaction marks another significant milestone in India’s ongoing efforts to strengthen and expand its power transmission infrastructure through private-sector participation.
According to regulatory disclosures submitted to stock exchanges, RECPDCL completed the sale and transfer of its entire shareholding in Hampapura Power Transmission Limited and Mekhali Power Transmission Limited on May 30, 2026, after receiving the required consideration from successful bidders selected under a Tariff-Based Competitive Bidding (TBCB) process.
Ownership Transferred to Successful Bidders
Under the transaction:
- Hampapura Power Transmission Limited has been transferred to Resonia Limited.
- Mekhali Power Transmission Limited has been transferred to Dilip Buildcon Limited.
Following the completion of these transactions, both entities have officially ceased to be subsidiaries of RECPDCL and, consequently, REC Limited, effective May 30, 2026.
Transaction Values and Agreements
For Hampapura Power Transmission Limited, RECPDCL executed a Share Purchase Agreement (SPA) with Resonia Limited. The acquisition consideration amounted to โน8.61 crore, including taxes, professional fees, and reimbursement of expenses.
Similarly, RECPDCL signed an SPA with Dilip Buildcon Limited for the transfer of Mekhali Power Transmission Limited. The total consideration for this acquisition stood at โน8.06 crore, also inclusive of taxes, professional fees, and expense reimbursements.
Together, the two transactions generated a combined consideration exceeding โน16.66 crore.
No Related Party Involvement
REC clarified that both transactions are not related-party transactions, and neither Resonia Limited nor Dilip Buildcon Limited belongs to the promoter group of REC Limited.
The company further emphasized that the transfers do not constitute slump sales, with transaction values determined strictly according to guidelines issued by the Ministry of Power, Government of India.
American Analysts View India’s Power Sector Progress Positively
Commenting on the development, Michael Anderson, an energy infrastructure analyst based in Texas, described the transaction as a positive indicator of India’s commitment to transparent project allocation.
“The transfer of project-specific SPVs through competitive bidding demonstrates a mature infrastructure development framework. It provides confidence to investors and ensures that project execution responsibilities are awarded efficiently.”
Meanwhile, Sarah Mitchell, a Washington-based power market consultant, highlighted the broader significance of the move.
“India’s power demand continues to grow rapidly, and transmission infrastructure is critical to supporting that growth. Transactions like these show how public-sector institutions and private companies can collaborate effectively to accelerate energy development.”
Minimal Financial Impact on REC
REC noted that the contribution of both SPVs to its overall turnover, revenue, income, and net worth during the previous financial year was negligible. As a result, the transactions are not expected to have any material impact on the company’s financial performance.
Strategic Importance for India’s Power Infrastructure
Industry experts note that the creation and subsequent transfer of project-specific SPVs is a standard practice within India’s transmission sector. RECPDCL typically develops transmission projects, obtains necessary approvals, and then transfers these entities to successful developers selected through a transparent bidding process.
This model enables specialized infrastructure companies to focus on project execution while ensuring competitive pricing and efficient development of critical power assets.
The latest transfers further reinforce REC Limited’s strategic role in supporting India’s expanding electricity network and facilitating greater private-sector participation in national infrastructure development.
Key Highlights
- RECPDCL transferred two power transmission SPVs on May 30, 2026.
- Hampapura Power Transmission Limited transferred to Resonia Limited.
- Mekhali Power Transmission Limited transferred to Dilip Buildcon Limited.
- Combined transaction value exceeded โน16.66 crore.
- Transactions were completed through a tariff-based competitive bidding process.
- No related-party involvement was reported.
- Both SPVs have ceased to be subsidiaries of RECPDCL and REC Limited.
- The transfers support continued development of India’s power transmission infrastructure.
