Dilip Buildcon Ltd has received a Letter of Intent (LOI) from REC Power Development and Consultancy Limited (RECPDCL) for the development of a major intra-state power transmission project in Karnataka. The project involves establishing a 400 kV substation at Mekhali in Belagavi district along with associated transmission lines, aimed at strengthening the state’s power infrastructure.
The contract has been awarded by RECPDCL acting as the Bid Process Coordinator on behalf of the Government of Karnataka. Under the agreement, Dilip Buildcon will acquire 100% equity in the project’s Special Purpose Vehicle (SPV) and will serve as the Transmission Service Provider (TSP) responsible for the development, ownership, operation, and maintenance of the transmission system.
Key Points
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Dilip Buildcon receives LOI from RECPDCL for a power transmission project in Karnataka
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Project includes 400 kV Mekhali substation and associated transmission lines in Belagavi district
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Estimated EPC value of the project is about ₹1,850 crore (excluding GST)
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Project to be implemented under the BOOT (Build, Own, Operate, Transfer) model
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Development to be carried out through Tariff Based Competitive Bidding (TBCB) route
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Construction and commissioning expected within 24 months from the effective date
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Concession period of 35 years from Commercial Operation Date (COD)
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No promoter or related party involvement in the awarding entity
Under the project scope, the company will handle design, engineering, procurement, construction, testing, commissioning, financing, and long-term operation and maintenance of the transmission assets.
The long concession period of 35 years is expected to provide stable annuity-based revenue visibility for the company once the project becomes operational. The project will be executed under a tariff-based annuity model, which is commonly used in transmission infrastructure projects.