Team siliconindia

• Ceigall wins LoI for 400/220 kV Velgaon GIS substation
• Project awarded via competitive bidding with 35-year operations
• Annual annuity set at Rs 58.5 crore against Rs 450 crore EPC cost

Ceigall India’s stock inched up 1.13% to Rs 242.66 after the company announced that it has secured a Letter of Intent (LoI) to develop the 400/220 kV Velgaon GIS substation. The LoI was issued on November 23, 2025, by REC Power Development and Consultancy Limited (RECPDCL) through the Tariff Based Competitive Bidding (TBCB) route.

Under the project’s scope, Ceigall will build the Velgaon substation and operate it for 35 years. As part of the agreement, the company must provide a contract performance guarantee of Rs 9.35 crore within 10 days of receiving the LoI. The project has a 24 month execution timeline starting from the effective date.

According to Ceigall, the project carries an annual annuity payout of Rs 58.5 crore for 35 years, compared with an estimated EPC cost of around Rs 450 crore. The company clarified that RECPDCL is a domestic public-sector entity and the deal does not fall under related-party transactions. Ceigall also confirmed that its promoters have no financial or business ties with the awarding organization.

Also Read: India Seals First Long-Term LPG Import Deal With the US

Ceigall India is a leading infrastructure EPC company known for executing large-scale structural projects, including elevated roads, flyovers, bridges, tunnels, expressways, highways, railway overbridges, and runways. Its business is mainly divided into EPC contracts and hybrid annuity model (HAM) projects.

On the financial front, the company reported a 13.86% drop in consolidated net profit to Rs 57.99 crore in Q2 FY26, even as revenue rose 4.45% to Rs 806.57 crore compared to the same quarter last year.