Dilip Buildcon Limited (DBL) has received a Letter of Intent (LOI) from REC Power Development and Consultancy Limited (RECPDCL) for the project titled “Establishing 400 kV Sub-station at Mekhali along with associated transmission lines in Belagavi District, Karnataka.”
The project will be executed through the acquisition of 100% equity shares of the project’s Special Purpose Vehicle (SPV), under which Dilip Buildcon will act as the Transmission Service Provider (TSP). The company will undertake the development, ownership, operation, and maintenance of the intra-state transmission system on a Build, Own, Operate, and Transfer (BOOT) basis under the Tariff Based Competitive Bidding (TBCB) route and Transmission Service Agreement (TSA).
The concession period for the project is 35 years from the Commercial Operation Date (COD). Construction and commissioning of the transmission assets are scheduled to be completed within 24 months from the effective date.
The scope of work includes development, financing, design, engineering, procurement, construction, testing, commissioning, operation, and maintenance of the transmission infrastructure associated with the project.
RECPDCL is acting as the Bid Process Coordinator (BPC) on behalf of the Government of Karnataka. The order has been awarded by a domestic entity, and the project will be executed under a tariff-based annuity model.
According to the disclosure, the EPC value for Dilip Buildcon is approximately ₹1,850 crore (excluding GST).
The company also confirmed that neither the promoter nor promoter group companies have any interest in the entity awarding the contract, and the order does not fall under related party transactions.
