Bhopal: Dilip Buildcon Limited has expanded its presence in the power infrastructure sector after securing a major transmission project in Karnataka through a competitive bidding process.
Dilip Buildcon Limited announced that it has received a Letter of Intent from REC Power Development and Consultancy Limited for the development of a power transmission project in Karnataka. The project involves establishing a 400 kV substation at Mekhali along with associated transmission lines in the Belagavi district. The estimated engineering, procurement, and construction (EPC) value of the project is approximately Rs 1,850 crore, excluding GST.
Under the terms of the project, Dilip Buildcon will acquire 100 percent equity shares of a project special purpose vehicle and act as the Transmission Service Provider. The company will be responsible for the development, ownership, operation, and maintenance of the intra-state transmission system under a Build, Own, Operate, and Transfer (BOOT) structure through the tariff-based competitive bidding route.
The project’s scope includes development, financing, design, engineering, procurement, construction, testing, and commissioning of transmission assets. Following completion, Dilip Buildcon will also handle the long-term operation and maintenance of the infrastructure as part of the project agreement. Construction and commissioning are expected to be completed within 24 months from the effective date.
The concession period for the project has been set at 35 years from the commercial operation date. The project will be executed under a tariff-based annuity model, which typically provides long-term revenue visibility. The company also confirmed that the awarding entity does not have any promoter or group company linkage with Dilip Buildcon and that the project does not fall under related party transactions. The order strengthens Dilip Buildcon’s portfolio in the energy transmission segment while supporting infrastructure development in Karnataka’s power network.
Disclaimer: This article is based solely on the regulatory disclosure issued by Dilip Buildcon Limited dated March 11, 2026, regarding the receipt of a Letter of Intent from REC Power Development and Consultancy Limited. No external sources or independent reporting were used in preparing this article.
