REC Ltd said in the press note said that the entire shareholding of REC Transmission Projects Company Limited (RECTPCL), a wholly-owned subsidiary of the company in Udupi Kasargode Transmission Limited. It comprises of 50,000 equity shares, have been transferred along with all its assets and liabilities on September 12, 2019, to Sterlite Grid 14 Limited, the successful bidder selected through Tariff Based Competitive Bidding Process for ‘Transmission System for 400 Kv Udupi (UPCL)-Kasargode D/C line, the company said.
In terms of the Guidelines/directions issued, from time to time, by the Ministry of Power, Government of India, RECTPCL has received a consideration of Rs8.50cr, comprising of Rs7.43cr (including GST) towards Professional Fee for Bid Process Coordination, Rs0.05cr towards cost of acquiring 50,000 equity shares of Rs10each of Udupi Kasargode Transmission Limited at par value and balance amount towards reimbursement of expenditure incurred on the project by RECTPCL and interest cost etc., from the successful Bidder. Further, the contribution of the aforesaid SPV to the turnover or revenue or income and net worth of REC, during the last financial year was negligible, the company said after market hours on Friday.
Hence, with effect from the aforesaid date, the above Project Specific SPV is not subsidiary of RECTPCL & REC, it added.
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