Ceigall India receives LoI for Velgaon GIS project

From REC Power Development and Consultancy

Ceigall India has received a Letter of Intent (LOI) from REC Power Development and Consultancy (RECPDCL) for the establishment of a 400/220 kV Gas Insulated Substation (GIS) in Velgaon, Maharashtra, under the Tariff Based Competitive Bidding (TBCB) mechanism. The LOI marks a major milestone in strengthening the company's footprint in the high-voltage power transmission sector.

The Velgaon GIS project will be completed over a two-year period, followed by a 35-year operation and maintenance term. The company informed that Rs 58.5 crore is the annuity per year for 35 years, against EPC cost of approx. Rs 450 crore.

 

This means long-term recurring cash flows (via PPA) and a stable asset base, which complements more transactional EPC business. By stepping into power transmission and distribution, Ceigall is positioning itself as not just a builder, but as a sustainable infrastructure company.

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