New Delhi: Ceigall India Ltd, one of India’s fastest-growing EPC companies, has announced a significant milestone in its infrastructure journey with the receipt of a Letter of Intent (LOI) from REC Power Development and Consultancy Limited (RECPDCL). The LOI pertains to the establishment of a 400/220 kV Gas Insulated Substation (GIS) in Velgaon, Maharashtra, under the Tariff-Based Competitive Bidding (TBCB) mechanism. This project marks Ceigall’s strategic expansion into the high-voltage power transmission sector.
The Velgaon GIS project is slated for completion over a two-year period, followed by a 35-year operation and maintenance term. Ceigall disclosed that the annuity for the project stands at Rs 58.5 crore per year for 35 years, against an EPC cost of approximately Rs 450 crore. This structure ensures long-term recurring cash flows through Power Purchase Agreements (PPA), creating a stable asset base that complements the company’s traditionally transactional EPC business.
By stepping into power transmission and distribution, Ceigall is positioning itself not merely as a builder but as a sustainable infrastructure company with a diversified portfolio.
Commenting on the achievement, Ramneek Sehgal, Chairman & Managing Director, Ceigall India Ltd, said: “We are honoured to be entrusted with the Velgaon GIS project by REC Power. This demonstrates Ceigall’s engineering strengths and our commitment to delivering large-scale, future-ready infrastructure. As India rapidly upgrades its power transmission backbone, Ceigall remains focused on building assets that enhance grid reliability and meet the highest benchmarks of safety and performance. The Velgaon substation will be a crucial addition to the regional power network, and we look forward to executing it with precision and excellence.”
This LOI adds to Ceigall’s strong run of project wins in FY25–26, which include national highway upgrades, bridge construction, mobility corridors, and key urban infrastructure works. The Velgaon project is expected to further strengthen the company’s growing presence in high-value engineering segments, reinforcing its role as a key player in India’s infrastructure transformation.
