Ceigall India Limited's Management Committee approved the acquisition of 100% equity in Velgaon Power Transmission Limited (VPTL) for ₹5 lakh cash consideration. This follows the company's selection as preferred bidder for the 400/220 kV Velgaon GIS substation project in Maharashtra under TBCB. The move enables asset ownership, promising long-term annuity revenues.
Acquisition covers 50,000 equity shares of ₹10 each in VPTL, a REC Power subsidiary incorporated March 29, 2025.
Project involves building a 400/220 kV gas-insulated substation with 24-month construction and 35-year O&M period.
Annual transmission charges fixed at ₹58.5 crore; EPC cost estimated at ₹450 crore.
LOI received November 24, 2025, from REC Power Development and Consultancy Limited.
Ceigall India strengthens its infrastructure portfolio by gaining full control of VPTL, transitioning from EPC contractor to asset developer in power transmission. Chairman Ramneek Sehgal noted this enhances grid reliability and aligns with India's energy infrastructure growth. The substation will support Maharashtra's regional power network, delivering stable cash flows through annuities. This acquisition complements Ceigall's FY26 wins in highways and renewables, signaling diversified revenue streams.
Sources: ScanX (scanx.trade), India Infoline (indiainfoline.com)