Dilip Buildcon wins ₹1,850 crore Mekhali 400 kV order

What DBL has been awarded in Karnataka

Dilip Buildcon Limited (DBL) has received a Letter of Intent (LoI) from REC Power Development and Consultancy Limited (RECPDCL) for a power transmission project in Belagavi district, Karnataka. The scope is titled “Establishing 400 kV Sub-station at Mekhali along with associated transmission lines (Belagavi District), Karnataka”. The estimated engineering, procurement and construction (EPC) value is approximately ₹1,850 crore, excluding GST. The contract is structured on a Build-Own-Operate-Transfer (BOOT) basis. The concession period is 35 years from the Commercial Operation Date (COD). Construction and commissioning are expected to be completed within 24 months from the Effective Date.

Project structure: TBCB route, BOOT model, and SPV ownership

DBL said the project will be executed under the Tariff Based Competitive Bidding (TBCB) route. Under this structure, DBL will acquire 100 percent equity shares of the project special purpose vehicle (SPV) and act as the Transmission Service Provider (TSP). The arrangement also requires a Transmission Service Agreement (TSA) under the TBCB framework. The project has been described as being on a tariff-based annuity model. RECPDCL acted as the bid process coordinator on behalf of the Government of Karnataka. DBL also stated that the award is from a domestic entity and does not involve related party transactions. The company added that its promoter and promoter group companies have no interest in the awarding entity.

What will be built: Mekhali substation and associated lines

As per the regulatory disclosure, the project involves establishing a 400/220/33 kV AIS sub-station at Mekhali. It also includes associated 400 kV and 220 kV transmission lines. The scope spans the full lifecycle of the transmission assets, including development, financing, design, engineering, procurement, construction, testing, commissioning, and operation and maintenance. The award is for an intra-state transmission system in Karnataka. Separately, the project is also described as being developed through Mekhali Power Transmission Limited. That project description includes a 400 kV substation and a power transmission network spanning approximately 470 circuit kilometres in Belagavi district.

Timeline: earlier disclosure and latest LoI

DBL’s exchange communication said the announcement follows a previous disclosure made on December 26, 2025. Another referenced update notes DBL was declared L-1 bidder for a 400 kV substation project on December 25. The latest development is the receipt of the LoI from RECPDCL, which formalises DBL’s selection as the successful bidder for the project package. The project documentation indicates the 35-year concession will start from COD rather than from the date of award. The company has also stated the construction and commissioning timeline of 24 months is counted from the Effective Date. These milestones are relevant for investors tracking when cash flows typically commence under BOOT transmission structures.

What DBL told exchanges under Regulation 30

In its disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, DBL informed stock exchanges about the order receipt. The company reiterated the core project features: the 400 kV substation at Mekhali, associated transmission lines, and the 35-year period from COD. It also emphasised that DBL would hold 100 percent equity in the project SPV and would serve as the TSP. DBL said the scope includes operation and maintenance, underscoring that the responsibility extends beyond construction. The filing also highlighted the absence of related party transactions. Additionally, the company noted the trading window for dealing in its securities for designated persons and insiders would remain closed until 48 hours after the information was made generally available.

Market reaction cited in reports

Separately from the Karnataka transmission award, market reports noted DBL shares hit a day’s high of ₹447 on the NSE on Tuesday after the company won a ₹2,524 crore canal project in Chhattisgarh. Another report mentioned DBL hit a day’s high of ₹434.45 on the NSE after bagging a ₹160 crore EPC road contract in Odisha’s Sundargarh district. These references reflect how order wins have coincided with short-term price moves in the stock. The Karnataka transmission order itself was also reported as a new order worth ₹1,850 crore. The company’s disclosures, however, focus on project structure, timelines, and governance confirmations rather than stock performance.

Other recent order updates mentioned alongside the Karnataka win

Along with the Karnataka LoI, other DBL-related updates were cited in the same set of information. DBL has been selected as the successful bidder for securing an LoI for grant of authorisation for laying, building, operating or expanding a petroleum and petroleum product (LPG) pipeline from Paradip, Odisha to Raipur, Chhattisgarh. DBL was also cited as the lowest (L-1) bidder for a ₹2,524.32 crore project awarded by the Water Resources Department, Government of Chhattisgarh. Another update stated DBL received a letter of award (LoA) worth ₹160.20 crore from Odisha Bridge & Construction Corporation (OB&CC). While these items cover different sectors and clients, they collectively point to DBL’s activity across infrastructure segments.

Key facts table: Karnataka 400 kV Mekhali project

Order snapshot table: other cited DBL projects

Why the Karnataka transmission award matters

The Karnataka project stands out because it combines EPC delivery with long-tenure operation and maintenance responsibilities under a BOOT structure. The 35-year concession framework ties the project’s economics to the post-commissioning phase, which is anchored to COD. The 24-month construction and commissioning requirement also sets a clear execution window from the Effective Date. The structure of DBL acquiring 100 percent equity in the SPV places ownership and performance responsibility with the company. The award being routed through TBCB aligns it with a competitive procurement mechanism typically used in transmission. The disclosures also provide governance clarity through confirmations on related party transactions and promoter interest.

Conclusion

Dilip Buildcon’s LoI from RECPDCL for the Mekhali 400 kV substation and associated transmission lines in Belagavi district formalises a ₹1,850 crore EPC-value transmission assignment under the TBCB-BOOT framework. The project carries a 35-year concession period from COD, with construction and commissioning expected within 24 months from the Effective Date. The next key milestones to watch, as per the disclosed structure, are the effective date commencement, commissioning schedule, and COD that triggers the concession timeline.