State-owned shadow banking firm REC Ltd on Wednesday said its board has approved a proposal to incorporate seven power transmission projects which would facilitate evacuation of renewable energy. These projects will evacuate clean energy from Maharashtra, Madya Pradesh, Karnataka and Rajasthan.
“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,” according to a regulatory filing.
RECTPCL auctions these transmission projects and hands over the incorporated entities to successful bidders for development and operation.
The seven transmission projects are allocated by the power ministry.
These seven SPVs include a transmission system for evacuation of power from RE projects in Osmanabad area (1 gigawatt) in Maharashtra.
Besides, the board has also approved three transmission systems for evacuation of power from RE projects in Rajgarh (2,500 megawatts) SEZ in Madhya Pradesh; in Gadag (2,500 MW), Karnataka — Part A and in Bidar (2,500 MW), Karnataka.
These projects also include three transmission system-strengthening schemes for evacuation of power of 8.1 GW each from solar energy zones in Rajasthan.
The companies to be incorporated will also be wholly-owned subsidiary companies of REC Ltd, it stated.