Ceigall India Secures LOI for Velgaon Substation Project
Filing Summary
Ceigall India Ltd has received a Letter of Intent (LOI) from REC Power Development and Consultancy Limited for a 400/220 kV Gas Insulated Substation in Velgaon, Maharashtra. The project, under the Tariff-Based Competitive Bidding mechanism, involves a two-year completion period followed by a 35-year operation and maintenance term. The annual annuity is Rs 58.5 crore against an EPC cost of approximately Rs 450 crore. This development marks a significant addition to Ceigall’s power infrastructure portfolio.
Ceigall India Ltd has announced the receipt of a Letter of Intent (LOI) from REC Power Development and Consultancy Limited (RECPDCL) for the establishment of a 400/220 kV Gas Insulated Substation (GIS) in Velgaon, Maharashtra. The project will be executed under the Tariff-Based Competitive Bidding (TBCB) mechanism. The LOI signifies a notable development in Ceigall’s expansion within the high-voltage power transmission sector.
The Velgaon GIS project is scheduled for completion over a two-year period. Following this, there will be a 35-year operation and maintenance term. The company has disclosed that the annuity for this period is Rs 58.5 crore annually, with an Engineering, Procurement, and Construction (EPC) cost of approximately Rs 450 crore. This project is expected to provide long-term recurring cash flows through a Power Purchase Agreement (PPA).
Ceigall’s involvement in the Velgaon project aligns with its strategy to diversify its business operations beyond traditional EPC activities. The project represents a shift towards establishing a stable asset base in the power transmission and distribution sector. The company continues to focus on building infrastructure that enhances grid reliability and meets safety and performance benchmarks.
This LOI adds to Ceigall’s series of project acquisitions in the fiscal year 2025-26, which include national highway upgrades, bridge construction, and urban infrastructure works. The Velgaon project further consolidates Ceigall’s presence in high-value engineering segments.
REC Power Development and Consultancy Limited is a subsidiary of REC Limited, focusing on providing consultancy services in the power sector. The company is involved in project management, engineering, and consultancy services for power generation, transmission, and distribution projects.
Ceigall India Ltd is an infrastructure engineering, procurement, and construction company. It specializes in structural works such as elevated roads, flyovers, bridges, railway overbridges, tunnels, highways, expressways, and runways. The company’s operations are divided into EPC projects and hybrid annuity model projects, reflecting its commitment to developing sustainable infrastructure solutions.