REC Limited Divests Luhri Power Transmission SPV

REC Limited, through its wholly-owned subsidiary RECPDCL, has successfully completed the divestment of its 100% stake in the project-specific Special Purpose Vehicle (SPV), Luhri Power Transmission Limited, to Terralight Solar Energy Tinwari Private Limited. Key Transaction Highlights: Deal Value: Complete divestment for ₹14.12 crore. Buyer & Model: Terralight Solar was selected via a competitive bidding process on a Build, Own, Operate, and Transfer (BOOT) basis. Project Scope: A ₹839.55 crore power transmission evacuation project in Himachal Pradesh, featuring a 400/220 kV GIS Nange Pooling Station and a 50 km double-circuit line to Koldam, with commissioning targeted for October 15, 2029. Strategic Rationale: Efficient Capital Recycling: This transaction highlights REC’s proven model of using SPVs under the Tariff-Based Competitive Bidding (TBCB) framework. RECPDCL secures initial clearances and orchestrates the bid, then exits to capture upfront transaction proceeds. Risk Mitigation: The handover transfers all construction-phase execution risks to the successful bidder, allowing REC to maintain its primary focus on its core, high-margin business of providing long-term debt financing for the underlying power assets. Financial Context: This strategic divestment comes against a backdrop of a slight moderation in Q1 FY27, where REC reported a consolidated net profit of ₹4,192.76 crore (-6.11% YoY) and revenue of ₹14,434.92 crore (-2.05% YoY). Outlook: By consistently executing this asset-light, capital-recycling strategy, REC ensures steady advisory/transaction income while keeping its balance sheet optimized to fund India’s expanding power and renewable energy infrastructure pipeline.