Ceigall India Limited has received a Letter of Intent (LoI) from REC Power Development and Consultancy Limited (RECPDCL) for a Common Transmission System project. The total project cost is approximately ₹5,300 crore, with annual transmission charges estimated at ₹608.67 crore for 35 years. The project involves a Common Transmission System for power evacuation from multiple power plants and is expected to take 36 months for execution.
Major Project Secured via LoI
Ceigall India Limited has announced the receipt of a Letter of Intent (LoI) from REC Power Development and Consultancy Limited (RECPDCL). This significant development pertains to the establishment of a Common Transmission System aimed at evacuating power from several power generation facilities, including Lakadia, Jam Khambhaliya, and Jamnagar. The LoI was received via email on September 3, 2026, following earlier correspondence.
Project Details and Financials
The awarded contract is for a Common Transmission System, described as a 765/400 kV AIS Substation with a 300 km Transmission Line. The total estimated project cost stands at approximately ₹5,300 crore, inclusive of GST. The broad consideration for the contract includes annual transmission charges of ₹608.67 crore, projected over a period of 35 years.
Execution and Operational Timeline
The execution of this substantial project is expected to span 36 months. Following the completion of the construction phase, the operational period for the transmission system is anticipated to be 35 years. The contract has been classified as a Tariff Based Contract Agreement.
Entity and Transaction Type
The entity awarding the LoI is REC Power Development and Consultancy Limited, a domestic entity. The nature of the contract is identified as a Letter of Intent (LOI) for the critical ‘Common Transmission System for evacuation of power from Lakadia (PhaseII: 7.5GW), Jam Khambhaliya (Phase-II: 5.5GW) and Jamnagar (Phase-I: 1GW) – Part-B’. This transaction is considered domestic and is stated to be conducted at ‘arm’s length’.
Source: BSE
