Dilip Buildcon Limited has received a Letter of Intent (LOI) from REC Power Development and Consultancy Limited (RECPDCL) for a power transmission project in Karnataka.

The project involves the establishment of a 400 kV substation at Mekhali in Belagavi district along with associated transmission lines. RECPDCL awarded the project while acting as the Bid Process Coordinator on behalf of the Government of Karnataka.

Under the terms of the contract, Dilip Buildcon will acquire 100% equity shares of 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 and Transfer (BOOT) basis through the Tariff Based Competitive Bidding (TBCB) route under a Transmission Service Agreement.

The scope of work includes development, financing, design, engineering, procurement, construction, testing, commissioning, operation and maintenance of the transmission infrastructure.

The EPC value for Dilip Buildcon is approximately ₹1,850 crore, excluding GST. Construction and commissioning of the project are expected to be completed within 24 months from the effective date.

The project will operate under a tariff-based annuity model and will have a concession period of 35 years from the Commercial Operation Date (COD). The company also confirmed that the order has been awarded by a domestic entity and does not fall under -party transactions.