Ceigall India approves funding, security for Velgaon transmission project

Ceigall India Limited has approved the creation of security for a rupee term loan facility and further investment in its wholly owned subsidiary, Velgaon Power Transmission Limited, to finance the implementation of the “Establishment of 400/220 kV Velgaon Substation (GIS)” project.

The approvals were granted by the company’s Management Committee at its meeting held on July 9, 2026. The project is being implemented under the Tariff Based Competitive Bidding (TBCB) framework.

Project background

Ceigall India was declared the Selected Bidder for the project in November 2025 after receiving a Letter of Intent from REC Power Development and Consultancy Limited.

In accordance with the project’s Request for Proposal (RFP), the company executed a Share Purchase Agreement on January 9, 2026, through which Velgaon Power Transmission Limited became its wholly owned subsidiary.

To implement the project, Ceigall India will infuse up to Rs 109.19 crore into the special purpose vehicle (SPV). The funding will be provided through a combination of equity shares, unsecured loans or other financial instruments, depending on the project’s funding requirements.

Approvals granted

The Management Committee approved the creation of security in connection with the rupee term loan sanctioned to the SPV for financing the project.

It also approved further investment in Velgaon Power Transmission Limited through equity share capital and the provision of loans, securities and guarantees, as required for project implementation.

Subsidiary details

Velgaon Power Transmission Limited was incorporated on March 29, 2025, and operates in the power transmission and distribution sector. The company has not yet commenced operations and therefore has no turnover to report.

The subsidiary has an authorised and paid-up share capital of Rs 5 lakh, comprising 50,000 equity shares of Rs 10 each.

Ceigall India stated that the investment does not constitute a related party transaction. It also said that no promoter, promoter group or group company has any interest in the subsidiary. The investment will be made in cash, with the acquisition of shares taking place in tranches based on the project’s funding requirements.

The company further stated that no governmental or regulatory approvals are required for the acquisition.

The featured photograph is for representation only.