The Board of Directors of the REC Limited company convened on September 27, 2023, and made pivotal decisions that will shape its future endeavors.
One of the significant highlights of this meeting was the unanimous approval for the sale and transfer of the entire shareholding of Ramgarh-II Transmission Limited. Currently held by REC Power Development and Consultancy Limited (RECPDCL), a wholly-owned subsidiary of REC, this transfer is set to be realized through a strategic agreement with Power Grid Corporation of India Limited. Power Grid Corporation emerged as the successful bidder in a Tariff-Based Competitive Bidding process.
This decision aligns with the company’s strategic vision and represents a key step in optimizing its portfolio. The sale and transfer process of Ramgarh-II Transmission Limited is anticipated to reach its culmination during the financial year 2023-24.
Furthermore, the Board of Directors, in a meeting that followed up on a communication from September 18, 2023, took note of the appointment of M/s. Kailash Chand Jain & Co., Chartered Accountants, and M/s. S C V & Co LLP, Chartered Accountants, as Statutory Auditors for the Company for the financial year 2023-24. This appointment was following the intimation received from the Comptroller and Auditor General (C&AG) of India.
It’s worth noting that this strategic transaction falls outside the purview of related party transactions and is not structured as a slump sale. The consideration for the sale and transfer of Special Purpose Vehicles (SPVs) adheres to the guidelines periodically issued by the Ministry Of Power, Government of India.
These strategic moves underscore the company’s commitment to optimizing its portfolio and its dedication to transparency and compliance with regulatory requirements. They also reflect a forward-looking approach to its operations in the evolving energy sector landscape.
