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Dilip Buildcon Limited has received a Letter of Intent (LoI) from REC Power Development and Consultancy Limited for the development of a 400 kV substation at Mekhali, along with associated transmission lines in Belagavi district.
The project will be executed under a 35-year concession period beginning from the Commercial Operation Date (COD). Under the agreement, Dilip Buildcon will acquire 100% equity in the project’s Special Purpose Vehicle (SPV) and 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–Transfer (BOOT) basis. The project has been awarded through the tariff-based competitive bidding (TBCB) route and will be governed by a Transmission Service Agreement (TSA).
The project has an estimated value of ₹1,850 crore (excluding GST) and is expected to be completed within 24 months from the effective date. It will be financed under a tariff-based annuity model.
News by Rahul Yelligetti.
