REC Powers Up Maharashtra Grid with Strategic SPV for 765 kV Transmission Project
REC Limited has taken another step toward strengthening India’s power transmission infrastructure with the incorporation of a new Special Purpose Vehicle (SPV) for a key transmission project in Maharashtra. Through its wholly owned subsidiary, REC Power Development and Consultancy Limited (RECPDCL), the company has incorporated Beed Paithan Power Transmission Limited to facilitate the implementation of an intra-state transmission project under the Tariff-Based Competitive Bidding (TBCB) framework.
The development highlights REC’s growing role not only as a leading power sector financier but also as a project developer and bid process coordinator for critical transmission infrastructure.
SPV Formed for 765 kV Transmission Project
RECPDCL has been appointed by the Government of Maharashtra as the Bid Process Coordinator (BPC) for developing the 765 kV AIS Paithan Substation project in Beed district.
To execute the bidding process, the company has incorporated Beed Paithan Power Transmission Limited as a Special Purpose Vehicle. The SPV has been created solely to facilitate the competitive bidding process before the project is handed over to the successful bidder.
Project to Be Awarded Through TBCB
The transmission project will be implemented under the Tariff-Based Competitive Bidding (TBCB) mechanism, which is widely used in India’s power sector to ensure transparent and competitive project allocation.
Under this framework:
- RECPDCL will manage the bidding process.
- The SPV will hold the project during the bidding stage.
- After the successful bidder is selected, the SPV, along with its assets, liabilities, and project rights, will be transferred to the winning developer.
This process enables smooth project implementation while maintaining transparency and regulatory compliance.
Key Highlights
- Project: 765 kV AIS Paithan Substation, Beed District, Maharashtra
- SPV Incorporated: Beed Paithan Power Transmission Limited
- Promoter: REC Power Development and Consultancy Limited (RECPDCL)
- Bid Process: Tariff-Based Competitive Bidding (TBCB)
- Bid Process Coordinator: RECPDCL
- Initial Investment: ₹5 lakh
- Ownership: 100% held by RECPDCL until project transfer
Minimal Initial Investment
REC has invested ₹5 lakh to subscribe to the entire equity share capital of the SPV.
The investment is intended only to establish the project company during the bidding phase and does not represent the overall cost of developing the transmission project.
Once the bidding process concludes, the SPV will be transferred to the selected transmission developer in accordance with the TBCB guidelines.
Supporting India’s Power Infrastructure
REC continues to play an important role in expanding India’s electricity transmission network.
Beyond financing power projects, the company is increasingly involved in project development, bid management, and infrastructure facilitation. Projects such as the proposed 765 kV transmission system are expected to strengthen Maharashtra’s grid infrastructure, improve power evacuation capacity, and support rising electricity demand.