What was filed
REC Limited told the exchanges that its wholly owned subsidiary, REC Power Development and Consultancy Limited (RECPDCL), has sold and transferred its entire shareholding in Luhri Power Transmission Limited to the bidder selected through a tariff-based competitive bidding process. With effect from August 21, 2026, Luhri Power Transmission is no longer a subsidiary of RECPDCL or of REC.
The buyer named in the filing is Terralight Solar Energy Tinwari Private Limited, which the company states does not belong to the promoter or promoter group. The transaction is not a related-party transaction and, per the filing, is not in the nature of a slump sale.
The build-and-transfer pattern
Luhri Power Transmission was a project-specific special-purpose vehicle. RECPDCL incorporates such SPVs to develop transmission projects and then transfers them to bidders chosen through competitive bidding, with consideration determined under guidelines issued by the Ministry of Power. This filing records the completion of one such transfer, following RECPDCL's receipt of the consideration.
The company describes the turnover, revenue and net worth contributed by this unit during the last financial year as "Negligible," underlining that the SPV was a project vehicle rather than an operating business of scale within the group.
Why it matters to a holder
The disposal is a routine step in RECPDCL's role as a bid process coordinator for transmission projects, rather than a divestment of a core asset. The filing itself flags the unit's contribution to group financials as negligible, so the direct financial impact on REC is limited.