Dilip Buildcon Ltd has been selected by REC Power Development and Consultancy Ltd (RECPDCL) to develop and operate an intra-state electricity transmission system in Maharashtra, with the engineering, procurement and construction component valued at ₹1,265 crore excluding goods and services tax.
The company disclosed the award in a stock exchange filing on Monday. The project involves establishing a 400 kV gas-insulated switchgear (GIS) Solapur/Paranda switching station in Dharashiv district under the build-own-operate-transfer model.
RECPDCL is acting as the bid process coordinator on behalf of the Maharashtra State Transmission Utility. The project was awarded through the tariff-based competitive bidding route, under which transmission infrastructure is developed and operated by a selected transmission service provider in accordance with the terms of the project agreement.
Under the arrangement, Dilip Buildcon will acquire 100 per cent equity in the project special purpose vehicle and act as the transmission service provider. Its responsibilities will cover the development, financing, design, engineering, procurement, construction, testing, commissioning, operation and maintenance of the transmission assets.
Construction and commissioning are required to be completed within 24 months from the project’s effective date, according to the request for proposal. After the system achieves commercial operation, it will be operated for 35 years under the transmission service agreement.
The project’s scope is therefore broader than the EPC contract value alone. The selected bidder is responsible for financing and delivering the infrastructure and will retain operating and maintenance responsibilities over the long-term concession period. The filing did not provide a project-wise breakdown of the planned transmission capacity beyond identifying the 400 kV switching station.
Dilip Buildcon said the project had been awarded by a domestic entity and would be implemented under the tariff-based competitive bidding model. The company also stated that neither its promoter nor promoter group companies had any interest in the entity awarding the contract.
According to the filing, the transaction does not fall under related-party transactions. The award adds a power transmission project to Dilip Buildcon’s construction portfolio while placing the company in a long-term ownership and operations arrangement through the project special purpose vehicle.
The next formal milestones are the acquisition of the project special purpose vehicle, commencement from the effective date specified under the project documents, and completion of construction and commissioning within the stipulated 24-month period.
