Ashoka Buildcon Limited has received a Letter of Intent (LOI) from REC Power Development and Consultancy Limited (REC) for the establishment of a 400/220/132 kV Air Insulated Substation (AIS) at Sakoli in Bhandara district, Maharashtra. The project has been awarded through the Tariff Based Competitive Bidding (TBCB) route.
The company had earlier submitted its bid for the Sakoli substation project to REC Power Development and Consultancy Limited. Following the bidding process, REC issued the LOI to Ashoka Buildcon dated August 13, 2026.
Under the terms of the award, Ashoka Buildcon is required to furnish a Performance Bank Guarantee of ₹16.70 crore within 10 days from the date of issuance of the LOI. The project has been awarded by a domestic entity and falls under the TBCB framework.
The scope of the contract involves the establishment of the 400/220/132 kV AIS Sakoli substation in Bhandara district, Maharashtra. The project has a completion period of 24 months, followed by an operation and maintenance period of 35 years.
The broad consideration for the project is ₹1,265.37 million annually for 35 years, representing the annual transmission charges. Based on the disclosure, this translates to approximately ₹126.54 crore in annual transmission charges over the 35-year O&M period.
The company said that neither the promoter/promoter group/group companies have any interest in the entity awarding the contract, nor does the contract fall under related-party transactions.
