The board of REC Ltd has approved the formation of eight special purpose vehicles (SPVs) associated with the development of as many interstate transmission system (ISTS) schemes.
In a stock exchange filing, REC said that its board, in a meeting held on September 30, 2024, approved the formation of eight SPVs that will be incorporated as wholly-owned subsidiaries of REC Power Development & Consultancy Ltd (RECPDCL), in turn a wholly-owned subsidiary of REC Ltd.
These SPVs will act as shell companies for eight ISTS schemes, for which RECPDCL has been named as the bid process coordinator (BPC).
As the BPC, RECPDCL will be responsible for selection of the developer (or the transmission service provider, TSP) for these ISTS schemes, under the tariff-based competitive bidding (TBCB) mechanism. The project SPVs will then be transferred to their respective developer, so selected.
The eight ISTS schemes are formally termed as:
- Transmission scheme for evacuation of power from Ratle HEP (850 MW) & Kiru HEP (624 MW): Part-A
- Network Expansion scheme in Western Region to cater to Pumped storage potential near Talegaon (Pune)
- Transmission system for Augmentation of transformation capacity at 765/400kV Lakadia Substation (WRSS XXI (A) Transco Ltd) in Gujarat – Part B
- Transmission system for evacuation of power from Rajasthan REZ Ph-V (Part-I: 4 GW) [Sirohi/ Nagaur] Complex
- Augmentation of transformation capacity at Banaskantha (Raghanesda) PS (GIS)
- Augmentation of transformation capaciry at KPSI (GIS) and KPS2 (GIS) (Phase-V, Part B1 and Part B2 scheme)
- Transmission system for proposed Green Hydrogen/Green Ammonia project in Tuticorin area
- Augmentation of transformation capacity by 3x500MVA, 400/220kV lCTs (6th – 8th) & 1x1500MVA, 765/400kV lCT (4th) at Bidar PS
According to information available with T&D India but not contained in the REC stock exchange filing, RECPDCL, as of October 1, 2024, had begun the bidding process for five of the eight aforementioned schemes (#1, #3, #4, #5 and #6) while that for the remaining three (#2, #7 and #8) was not initiated.
Pending SPVs of PFCCL
Meanwhile, according to T&D India estimates, PFC Consulting Ltd has initiated the bidding process of at least five ISTS-TBCB schemes for which the formation of project SPV is still pending.
Also read: REC targets renewable energy loan book of Rs.3 trillion by 2030
Featured photograph (source: Siemens) is for representation only
