Ceigall India Limited, one of India’s fastest-growing infrastructure EPC companies, has received a Letter of Intent (LOI) from REC Power Development and Consultancy Limited (RECPDCL) for the development of a 400/220 kV Gas Insulated Substation (GIS) at Velgaon in Maharashtra. The project will be executed under the Tariff-Based Competitive Bidding (TBCB) framework and marks Ceigall’s entry into a high-value power transmission asset.
Under the project scope, the substation will be completed over a two-year construction period, followed by a 35-year operation and maintenance (O&M) term. Ceigall informed that the project carries an annual annuity of ₹58.5 crore for 35 years, against an EPC cost of approximately ₹450 crore.
The project structure is expected to provide Ceigall with long-term, predictable cash flows through annuity payments, adding stability to its predominantly EPC-led business model. By expanding into power transmission and distribution assets, the company is aiming to build a more sustainable infrastructure platform alongside its execution-focused operations.
Commenting on the development, Mr. Ramneek Sehgal, Chairman and Managing Director, Ceigall India Ltd, said the Velgaon GIS project underscores Ceigall’s engineering capabilities and growing expertise in complex, future-ready infrastructure. He added that as India continues to upgrade its power transmission backbone, Ceigall remains committed to delivering assets that enhance grid reliability while meeting high standards of safety and performance.
The Velgaon project adds to Ceigall’s growing list of project wins in FY25–26, which include national highway upgrades, bridge works, mobility corridors and urban infrastructure projects. The new contract is expected to further strengthen the company’s presence in high-voltage power transmission and other specialised engineering segments.