Dilip Buildcon receives LoI for 400 kV Mekhali substation project in Karnataka

Dilip Buildcon Limited (DBL) has received a Letter of Intent from REC Power Development and Consultancy Limited (RECPDCL) for developing a 400 kV substation at Mekhali along with associated transmission lines in Belagavi District, Karnataka. The award formalises the L-1 position secured by DBL in December 2025. Power Peak Digest had earlier reported DBL’s emergence as the lowest bidder after it beat five competitors, including Adani Energy Solutions, Power Grid Corporation of India Limited (POWERGRID), and Montecarlo Limited.

The project will be implemented under the Tariff Based Competitive Bidding (TBCB) route on a Build, Own, Operate and Transfer (BOOT) basis. DBL will acquire 100 per cent equity in the project special purpose vehicle (SPV) and act as the Transmission Service Provider (TSP).

The engineering, procurement and construction (EPC) value of the project is approximately Rs 1,850 crore (excluding GST). Construction and commissioning are scheduled to be completed within 24 months from the effective date. The concession period will extend for 35 years from the Commercial Operation Date (COD).

The project scope includes the development of a new 400/220/33 kV air-insulated substation at Mekhali equipped with two 500 MVA interconnecting transformers. It will also include a 2×500 MVA substation, bus reactors, line reactors, and double-circuit transmission lines linking key nodes such as Yalwar, Dhoni, Kudachi, and Mahalingpur.

The featured photograph is for representation only.