Ceigall India Secures ₹5,300 Crore Transmission LoI

Ceigall India has received a Letter of Intent (LoI) from REC Power Development and Consultancy Limited for a major power-transmission project in Gujarat. The project has an estimated total cost of approximately ₹5,300 crore, including GST, and covers the evacuation of renewable power from the Lakadia, Jam Khambhaliya and Jamnagar renewable-energy zones. The project includes a 765/400 kV substation and approximately 300 km of transmission lines. Under the tariff-based contract, Ceigall India is expected to receive annual transmission charges of ₹608.67 crore over a 35-year operational period. The execution period is estimated at 36 months. The development could strengthen Ceigall India’s presence in power-transmission infrastructure and diversify its business beyond road construction. The long-term operating period may provide recurring revenue visibility after commissioning. However, the LoI is not the same as a final work order, and investors should monitor formal award conversion, financing requirements, execution timelines and project returns. Overall, the project is a significant addition to Ceigall India’s infrastructure pipeline, but its eventual financial impact will depend on successful execution and commencement of operations.