Ceigall India Receives LoI for ₹5,300 Crore Transmission Project from RECPDCL
Ceigall India Limited (NSE: CEIGALL, BSE: 544223) has received a Letter of Intent (LoI) from REC Power Development and Consultancy Limited (RECPDCL) for a major power transmission project involving the evacuation of renewable power from multiple generation zones in Gujarat.
The company disclosed the development on September 3, 2026, under Regulation 30 of the SEBI Listing Regulations.
₹5,300 Crore Transmission Project
The LoI relates to the Common Transmission System for evacuation of power from Lakadia (Phase-II: 7.5 GW), Jam Khambhaliya (Phase-II: 5.5 GW) and Jamnagar (Phase-I: 1 GW) – Part-B.
The project involves the development of a 765/400 kV AIS substation along with approximately 300 km of transmission line.
The total project cost is estimated at approximately ₹5,300 crore, including GST.
This represents a significant addition to Ceigall India’s project portfolio and expands its presence into large-scale transmission infrastructure.
Annual Transmission Charges of ₹608.67 Crore
Under the tariff-based contract, the project carries annual transmission charges of ₹608.67 crore for 35 years.
The long operational period provides a potentially significant long-term revenue opportunity associated with the project.
The project is structured around a 35-year operational period, while the work execution period is 36 months, subject to the scheduled commissioning requirements.
Supporting Renewable Power Evacuation
The project is designed to provide a common transmission system for evacuating power from several major renewable-energy development areas.
The transmission system will cover power evacuation requirements associated with:
- Lakadia Phase-II – 7.5 GW
- Jam Khambhaliya Phase-II – 5.5 GW
- Jamnagar Phase-I – 1 GW
The planned infrastructure is therefore linked to a combined power evacuation requirement of 14 GW across these phases.
Strategic Significance for Ceigall India
The LoI is strategically important because it strengthens Ceigall India’s exposure to India’s expanding power transmission and renewable-energy infrastructure.
While Ceigall has established its presence in the infrastructure and road-development space, large transmission projects can provide an additional avenue for diversification and long-term infrastructure opportunities.
The project also aligns with India’s broader requirement for transmission infrastructure to connect new renewable-energy generation capacity with demand centres.
No Promoter Interest or Related-Party Transaction
Ceigall India has confirmed that neither the promoter/promoter group nor its group companies have any interest in RECPDCL.
The company has also stated that the transaction does not fall under related-party transactions.
Investor Takeaway
The RECPDCL LoI is a major project win for Ceigall India from an order-book and long-term infrastructure perspective.
The headline figure is the approximately ₹5,300 crore total project cost, while the project provides for ₹608.67 crore of annual transmission charges for 35 years.
However, investors should distinguish between the project cost and Ceigall India’s revenue/profit contribution. The ₹5,300 crore figure represents the total project cost and should not automatically be treated as revenue or order value accruing to Ceigall.
The key factors to watch will be formal contract execution, financing, project implementation, commissioning within the 36-month execution period and the eventual impact on Ceigall India’s order book and earnings.
Key Details
- Company: Ceigall India Limited
- NSE: CEIGALL
- BSE: 544223
- Awarding Entity: REC Power Development and Consultancy Limited
- Instrument: Letter of Intent (LoI)
- Project: Common Transmission System – Lakadia, Jam Khambhaliya and Jamnagar
- Transmission Infrastructure: 765/400 kV AIS Substation + ~300 km transmission line
- Estimated Total Project Cost: ~₹5,300 crore including GST
- Annual Transmission Charges: ₹608.67 crore
- Operational Period: 35 years
- Work Execution Period: 36 months
- Promoter Interest: None
- Related-Party Transaction: No
Disclaimer
This article is based on information disclosed by Ceigall India Limited and is intended for informational and educational purposes only. The ₹5,300 crore figure represents the company’s disclosed total project cost and should not be interpreted as guaranteed revenue or profit for Ceigall India. This article is not investment advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult a qualified financial adviser before making investment decisions.