Ceigall India gets ₹5,300 crore LOI for Gujarat power transmission project

The Rs 5,300 crore transmission project adds a major order to Ceigall India’s infrastructure portfolio and offers long-term transmission revenue.

Ceigall India shares rose nearly 4% after the company received a Letter of Intent from REC Power Development and Consultancy for a Rs 5,300 crore power transmission project in Gujarat. The project includes a 765/400 kV AIS substation and around 300 km of transmission lines, with 36 months of execution followed by a 35-year operational period and annual transmission charges of Rs 608.67 crore.

Mumbai: Ceigall India has received a letter of intent from REC Power Development and Consultancy Limited for a Rs 5,300 crore transmission project in Gujarat, strengthening the infrastructure company’s presence beyond its core roads portfolio.The contract covers a common transmission system designed to evacuate power from Lakadia, Jam Khambhaliya and Jamnagar, three important generation zones in the state.Major transmission infrastructureUnder the project, Ceigall India will develop a 765/400 kV air-insulated substation and approximately 300 kilometres of transmission lines.The system will facilitate power evacuation from Lakadia Phase-II, with a capacity of 7.5 GW, Jam Khambhaliya Phase-II, with 5.5 GW, and Jamnagar Phase-I, with 1 GW.The company said the project value of about Rs 5,300 crore includes goods and services tax. Construction is scheduled to be completed within 36 months.Long-term revenue visibilityAfter commissioning, Ceigall India will operate the transmission asset for 35 years. The company is expected to receive annual transmission charges of Rs 608.67 crore throughout the operational period, providing a long-duration revenue stream. Ceigall India Emerges L1 Bidder For ₹330.84 Crore PWD Contract, Delhi Road Strengthening Project Boosts Order BookManaging Director Ramneek Sehgal described the award as an important milestone in the company’s effort to deepen its position in transmission infrastructure.He said the project would help build critical electricity networks in Gujarat, enable efficient evacuation from key generation regions and create long-term value for stakeholders.Portfolio diversification gathers paceThe award broadens Ceigall India’s infrastructure portfolio, which spans highways, expressways, bridges, flyovers, railway overbridges, tunnels and runways. Ceigall India Executes 15 Power Purchase Agreements For 130 MW Solar Project Worth ₹572 Crore The company undertakes projects through engineering, procurement and construction contracts as well as the Hybrid Annuity Model.Ceigall India is also expanding into renewable energy through utility-scale solar and battery energy storage system projects. The latest transmission award complements that diversification strategy and positions the company to participate more extensively in India’s evolving power and energy infrastructure market.The listed company trades on the BSE under scrip code 544223 and on the NSE under the symbol CEIGALL. Its ISIN is INE0AG901020, according to the filing.Disclaimer: This article is based on company disclosures and is for informational purposes only, not investment advice or an independent recommendation.