Dilip Buildcon Limited has secured a significant long-term power transmission project in Karnataka after being selected as the successful bidder by REC Power Development and Consultancy Limited (RECPDCL). The project involves establishing a 400 kV sub-station at Mekhali in Belagavi district along with associated transmission lines, marking another major milestone in the company’s infrastructure portfolio.
The project will be executed for a concession period of 35 years from the Commercial Operation Date and will be developed under the Build, Own, Operate and Transfer model through the Tariff Based Competitive Bidding route. RECPDCL acted as the bid process coordinator on behalf of the Government of Karnataka for this intra-state transmission system.
As part of the scope, Dilip Buildcon will develop a 400/220/33 kV air-insulated sub-station at Mekhali and construct the associated 400 kV and 220 kV transmission lines. The company will be responsible for the entire lifecycle of the asset, including financing, design, engineering, procurement, construction, testing, commissioning, and long-term operation and maintenance. Construction and commissioning are scheduled to be completed within 24 months from the effective date, in line with the request for proposal conditions.
Under the transaction structure, Dilip Buildcon will acquire 100% equity of the project special purpose vehicle and act as the transmission service provider for the duration of the concession. The project will operate under a tariff-based annuity framework, ensuring predictable cash flows over the concession period. The EPC value for Dilip Buildcon, excluding GST, is estimated at ₹1,850 crore.
The contract has been awarded by a domestic entity and does not involve any related party transactions. There is no interest of the promoter or promoter group in the awarding entity, as disclosed by the company.
