Dilip Buildcon Limited has announced that it has received a Letter of Intent (LOI) for a major power transmission project in Karnataka. The project has been awarded by REC Power Development and Consultancy Limited on behalf of the Government of Karnataka. The work involves the development of a 400 kV substation at Mekhali in the Belagavi district, along with associated transmission lines.
The announcement follows an earlier disclosure made by the company in December 2025 regarding the same project. As part of the agreement, Dilip Buildcon will acquire 100 percent equity shares in a Project Special Purpose Vehicle (SPV), which will act as the Transmission Service Provider for the project. The transmission infrastructure will be developed under the Build, Own, Operate, and Transfer (BOOT) model through a Tariff-Based Competitive Bidding (TBCB) process.
Under the project scope, the company will be responsible for several activities, including development, financing, design, engineering, procurement, and construction of the transmission system. In addition, Dilip Buildcon will also undertake testing, commissioning, operation, and maintenance of the project assets once the construction work is completed.
The estimated Engineering, Procurement, and Construction (EPC) value of the project for Dilip Buildcon is around ₹1,850 crore, excluding Goods and Services Tax (GST). According to the company, the construction and commissioning work is expected to be completed within 24 months from the effective date of the agreement.
After the project becomes operational, it will run under a concession period of 35 years from the Commercial Operation Date (COD). During this time, the project will function under a tariff-based annuity model, ensuring long-term revenue generation for the company.
The company also clarified that the project is a domestic contract and does not involve any related party transactions, in line with the regulations of the Securities and Exchange Board of India. It further confirmed that neither the promoters nor the promoter group companies have any interest in the awarding authority.
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