REC Ltd.

Rural Electrification Corporation (REC) has executed the share purchase agreement (SPA) on April 18, 2012 between RECTPCL, VTSL and PGCIL for establishment of transmission system associated with IPPs of Vemagiri Area- Package A- Vemagiri Pooling Station-Khammam 765 kV 1xD/c (1st ckt.) line and Khamam - Hyderabad 765 kV D/C (1st ckt.) line.

Pursuant to execution of agreement, RECTPCL has received an acquisition price of Rs 18.27 crore from PGCIL towards acquisition of VTSL along with its all assets and liabilities.

Earlier, after approval of the Ministry of Power, 50,000 equity shares of Vemagiri Transmission System (VTSL), which were held by REC Transmission Projects Company (RECTPCL), a wholly owned subsidiary company of REC and its nominees, were transferred along with all assets and liabilities of the company (VTSL) to Power Grid Corporation of India (PGCIL) and their nominees, substantially upon the terms and conditions as detailed in the share purchase agreement.

REC is engaged in providing financial assistance to state electricity boards, state government departments and rural electric co-operatives for rural electrification projects as are sponsored by them.