REC gains after board OK selling MP power transmission package-I

REC rose 1.04% to Rs 112.05 after the company said that its board approved sale & transfer of MP power transmission package-I to Megha Engineering & Infra.

REC's board approved the incorporation of a project-specific special purpose vehicle (SPV), as wholly owned subsidiary of REC Power Development & Consultancy Limited (RECPDCL), for the transmission project 'North Eastern Region Expansion Scheme-XVI (NERES-XVI)' to be implemented through Tariff Based Competitive Bidding (TBCB) process.

Further, the board also approved sale and transfer of MP Power Transmission Package-I held by RECPDCL to Megha Engineering & Infrastructures, the successful bidder selected through Tariff Based Competitive Bidding process.

REC is a Government company engaged in extending financial assistance across the power sector value chain and is a systemically important (Non-Deposit Accepting or Holding) non-banking finance company (NBFC) registered with Reserve Bank of India (RBI). REC is a leading infrastructure finance company in India and the principal products of REC are interest-bearing loans to state electricity boards, state power utilities/state power departments and private sector for all segments of power infrastructure.

On consolidated basis, the company's net profit rose 1.5% to Rs 2,732.12 crore despite of 0.9% decline in total income to Rs 9,964 crore in Q2 FY23 over Q2 FY22.

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