Ceigall India shares rise after ₹609 crore REC Power project win in Gujarat-Maharashtra
Key Takeaways
- •Ceigall India won a power transmission project in Gujarat and Maharashtra valued at approximately ₹609 crore.
- •The order was awarded by REC Power Development and Consultancy Ltd (RECPDCL), a subsidiary of state-run REC Ltd.
- •The project carries annual transmission charges of roughly ₹608.67 crore over a 35-year concession period.
- •The win adds a long-duration recurring revenue stream to Ceigall India's order book, complementing its roads, highways, bridges and power transmission portfolio.
- •The project aligns with India's expansion of its interstate transmission network to evacuate renewable energy from western states such as Gujarat and Rajasthan.
Ceigall India shares rose after the company said it had won a REC Power project in Gujarat and Maharashtra worth ₹609 crore.
Ceigall India said the project carries annual transmission charges of ₹6,086.70 million, or ₹608.67 crore, for a period of 35 years.
The order has been awarded by REC Power Development and Consultancy Ltd (RECPDCL), a subsidiary of state-run REC Ltd that serves as the bid process coordinator for interstate transmission projects, which are typically awarded through tariff-based competitive bidding. For Ceigall India, an infrastructure EPC company with a portfolio spanning roads, highways, bridges and power transmission work, the win adds a long-duration revenue stream to its order book, as transmission concessions of this kind generate fixed annual charges over the concession period rather than one-time construction revenue. The project also comes as India continues to expand its interstate transmission network to evacuate renewable energy from resource-rich western states such as Gujarat and Rajasthan.
