Rs 18,610 crore order book: Road Construction Company Wins Rs 1,850 Crore 400 kV Power Transmission Project in Karnataka
DSIJ Intelligence-2Categories: Mindshare, Trending
The stock price of the company has increased by 30 per cent returns from its 52-week low.
Dilip Buildcon Limited (DBL) has emerged as the L-1 bidder for a major power transmission project awarded by REC Power Development and Consultancy Limited (RECPDCL) in Karnataka. The project involves the development of a 400 kV sub-station at Mekhali along with associated transmission lines in Belagavi district, strengthening the region’s power infrastructure.
The scope of the project includes the establishment of a 400/220/33 kV Air Insulated Sub-station (AIS) and the Construction of related transmission lines. The project will be executed under the Tariff Based Competitive Bidding (TBCB) route on a Build, Own, Operate, and Transfer (BOOT) model, reflecting a long-term private participation framework in the transmission sector.
The concession period for the project is 35 years from the Commercial Operation Date (COD). Construction and commissioning are expected to be completed within 24 months, after which DBL will be responsible for the operation and maintenance of the transmission assets for the duration of the contract.
From a financial perspective, the Engineering, Procurement, and Construction (EPC) value of the project for Dilip Buildcon, excluding GST, stands at approximately Rs 1,850 crore. As part of the agreement, DBL will acquire 100 per cent equity in the project’s Special Purpose Vehicle (SPV) and function as the Transmission Service Provider (TSP), overseeing development, financing, and long-term maintenance.
This project further strengthens Dilip Buildcon’s presence in the power transmission segment and adds a sizeable long-tenure infrastructure asset to its portfolio, aligning with its strategy of expanding participation in hybrid EPC-BOOT projects.
The stock price of the company has increased by 30 per cent returns from its 52-week low.
Disclaimer: The article is for informational purposes only and not investment advice.