Dilip Buildcon Limited (DBL) announced the receipt of a Letter of Intent (LOI) for a significant power transmission project in Karnataka’s Belagavi District. The project, awarded by REC Power Development and Consultancy Limited (RECPDCL), involves establishing a 400 kV Sub-station and associated transmission lines. The total EPC value for DBL, excluding GST, is approximately ₹1,850 Crore, with a concession period set at 35 years post-Commercial Operation Date.
Confirmation of Project Letter of Intent
Dilip Buildcon Limited (DBL) has formally informed the stock exchanges regarding the receipt of a Letter of Intent (LOI). This LOI was issued by REC Power Development and Consultancy Limited (RECPDCL), which acted as the Bid Process Coordinator on behalf of the Government of Karnataka.
The subject of the award is the establishment of a “400 kV Sub-station at Mekhali along with associated transmission lines” located in the Belagavi District, Karnataka. The announcement confirms the timeline continuation following a previous disclosure made on December 26, 2025.
Key Terms of the Contract Award
The significant terms detailed in Annexure A outline the scope and structure of the engagement. DBL’s role includes the acquisition of 100% equity shares of the Project SPV and acting as the Transmission Service Provider (TSP). The engagement is structured under the Tariff Based Competitive Bidding (TBCB) route, necessitating a Transmission Service Agreement (TSA).
The nature of the contract encompasses the full lifecycle of the asset: Development, financing, design, engineering, procurement, construction, testing, commissioning, operation and maintenance of the transmission assets.
Financial Value and Execution Timeline
The estimated Engineering, Procurement, and Construction (EPC) value for DBL, excluding Goods and Services Tax (GST), stands at approximately ₹1,850 Crore.
The project execution mandates that construction and commissioning must be completed within 24 months from the Effective Date. Furthermore, the project will be executed under a tariff-based annuity model. The concession period granted for the project spans 35 years, commencing from the Commercial Operation Date (COD).
It is noted that this is a Domestic entity awarding the contract, and DBL confirms that neither the promoter nor promoter group companies have any interest in the awarding entity.
Trading Window Closure
In compliance with the internal Code of Conduct regarding the Prevention of Insider Trading, the Company announced that the trading window for dealing in the securities of the Company for all designated persons and insiders will remain closed until 48 hours from the date this information was made generally available to the public.
Source: BSE
