Ceigall India has announced a significant development in its infrastructure portfolio with the receipt of a Letter of Intent dated 23 November 2025 from REC Power Development and Consultancy Limited (RECPDCL). The project, awarded under the Tariff Based Competitive Bidding (TBCB) framework, involves the establishment of a 400/220 kV Gas-Insulated Substation (GIS) at Velgaon. This update follows the company’s earlier communication made on 18 July 2025 and has been disclosed in accordance with Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements.
The order comes from a domestic awarding authority, and Ceigall India is required to furnish a Contract Performance Guarantee of ₹9.35 crore within ten days of the issuance of the Letter of Intent. The project is structured under the competitive tariff model, reflecting the company’s ability to deliver technically complex and long-horizon infrastructure assets under stringent commercial conditions.
The Velgaon GIS substation project carries a completion timeline of 24 months from its effective date. Beyond the construction phase, Ceigall India will be responsible for operating and maintaining the facility for a lengthy period of 35 years, underscoring the long-term revenue visibility and operational commitment associated with the award. The annual transmission charges for the project have been fixed at ₹585 million, amounting to a substantial and sustained revenue stream over the O&M tenure.
The company clarified that neither its promoters nor any entity within the promoter group has any interest in RECPDCL, ensuring full compliance with governance requirements pertaining to related-party transactions. Ceigall India also confirmed that this order does not fall under the category of related-party engagements.
