Ceigall India secures Rs 5,300 crore power transmission project LoI
Ceigall India stock surged 4% after securing a Letter of Intent for a major power evacuation project with REC Power Development. The Rs 5,300 crore deal involves building substations and transmission lines to evacuate power from three Indian regions.
Shares of Ceigall India climbed to an intraday high of Rs 359.85, gaining 4%, following a Letter of Intent (LoI) agreement with REC Power Development and Consultancy Limited. The LoI covers the "Common Transmission System for evacuation of power from Lakadia (Phase-II: 7.5 GW), Jam Khambhaliya (Phase-II: 5.5 GW) and Jamnagar (Phase-I: 1 GW) – Part-B" project, with a total estimated cost of Rs 5,300 crore including GST. The agreement outlines plans to develop a 765/400 kV AIS substation alongside approximately 300 km of transmission lines under a tariff-based contract. Execution is scheduled to take 36 months, followed by an operational period spanning 35 years. According to Ceigall India's disclosure, the project generates annual transmission charges estimated at Rs 608.67 crore over the 35-year term. The company confirmed the order came from a domestic entity unrelated to its promoters or group companies, ensuring no related-party transactions occur. This long-term project addition strengthens Ceigall India's position in the power transmission sector.
