Ceigall India Wins LOI to Build 400/220 kV Velgaon GIS Project in Maharashtra

25 Nov 2025 , 01:13 PM

Ceigall India Ltd announced that it has received a Letter of Intent from REC Power Development and Consultancy Limited for the development of a 400/220 kV Gas Insulated Substation in Velgaon, Maharashtra. The project has been awarded under the Tariff Based Competitive Bidding mechanism.

The LOI strengthens Ceigall’s position in the high voltage power transmission segment, marking a significant step in expanding its capabilities beyond traditional EPC projects.

The Velgaon GIS project will be executed over a two year timeline, after which Ceigall will take charge of operation and maintenance for a period of 35 years. The long term engagement will provide steady cash flows and add to the company’s stable asset base.

The project carries an annual annuity of Rs 58.5 crore for 35 years, against an EPC cost estimated at around Rs 450 crore. This model ensures predictable income through the project period and supports Ceigall’s strategic shift toward sustainable, recurring revenue streams.

Ceigall highlighted that its entry into the power transmission and distribution sector reflects a broader transformation, moving from being known purely as an EPC contractor to becoming a long term infrastructure asset developer.

Chairman and Managing Director Ramneek Sehgal said the award reinforces Ceigall’s engineering capabilities, adding that the Velgaon GIS will enhance grid reliability and support growing regional electricity needs. He stated that the company remains committed to delivering infrastructure that meets high standards of safety, quality and performance.

The new LOI builds on a strong pipeline of recent project wins for Ceigall in FY25–26, which include national highway upgrades, bridges, mobility corridors and urban development works. The Velgaon project further diversifies the company’s presence in high value, technologically advanced engineering segments.

Ceigall India Ltd is listed on both BSE and NSE, and operates across EPC and hybrid annuity model projects. The company specialises in large scale infrastructure, including elevated roads, flyovers, railway overbridges, expressways, tunnels and runways.

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