MUMBAI, India – November 24, 2025 – Ceigall India Limited (BSE: 544223, NSE: CEIGALL) has formally announced the receipt of a significant Letter of Intent (LOI) for a large-scale power transmission project, marking a key milestone in the company’s growth trajectory.
In a regulatory filing submitted to both the BSE Limited and the National Stock Exchange of India Limited on November 24, 2025, the company intimated that it has received an LOI from REC Power Development and Consultancy Limited (RECPDCL). The project, awarded through a Tariff Based Competitive Bidding (TBCB) process, involves the “Establishment of 400/220 kV Velgaon Substation (GIS).”
Key Project and Financial Details
Pursuant to SEBI circular guidelines, Ceigall India provided a detailed breakdown of the contract. The project is not only significant in scale but also in its long-term revenue visibility.
- Awarding Entity: REC Power Development and Consultancy Limited (RECPDCL), a prominent domestic entity in the power sector.
- Project Nature: Establishment of a 400/220 kV Gas Insulated Substation (GIS) at Velgaon. GIS technology is known for its compact footprint and high reliability, making it a preferred choice for modern power infrastructure.
- Contract Value & Term: The company will receive Annual Transmission Charges of ₹585.00 Million (₹58.5 Crore) for a substantial period of 35 years. This long-term agreement provides a stable and predictable revenue stream.
- Execution Timeline: The construction and establishment phase of the substation is set for a completion period of 24 months from the effective date.
- Performance Guarantee: As per the terms, Ceigall India will provide a Contract Performance Guarantee of ₹9.35 Crore within 10 days from the date of the LOI issuance.
Strategic Significance for Ceigall India
The securing of this contract through a competitive bidding process underscores Ceigall India’s technical expertise and competitive positioning in the power transmission EPC (Engineering, Procurement, and Construction) sector. The 35-year Operation & Maintenance period, following the 2-year construction phase, ensures a long-term annuity-like income, which is highly valued by investors for its revenue sustainability.
The company confirmed that this is not a related party transaction and that no promoters or group companies have any interest in RECPDCL, ensuring the award was made at arm’s length.
The original intimation, dated November 23, 2025, with Ref. No: RECPDCL/TBCB/Velgaon/2025-26/2898, is available for public viewing on the company’s official website at www.ceigall.com.
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