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Dilip Buildcon to Sell Power Stake for Rs 2,914 Crore
Dilip Buildcon is building a large electricity transmission project in Karnataka.
The project includes a substation and many kilometres of power lines.
Alpha Alternatives will buy Dilip Buildcon’s 51% share after the project starts operating.
The planned value of that sale is about Rs 2,914 crore.
The project is expected to begin commercial operations around mid-2028.
Dilip Buildcon says this is part of a plan to own and later sell long-term infrastructure assets.
The company also received permission to build and operate an LPG pipeline between Paradip and Raipur.
The deal and the projects still require approvals and must meet other conditions.
Dilip Buildcon agreed to sell its 51% stake in a Karnataka power transmission project to Alpha Alternatives.
The Mekhali project includes a 400 kV/220 kV substation and about 470 circuit kilometres of transmission lines.
The project’s estimated cost is Rs 2,171 crore, with equity investment of approximately Rs 429 crore.
Alpha Alternatives will buy Dilip Buildcon’s stake after commissioning at an enterprise value of roughly Rs 2,914 crore.
Dilip Buildcon also received approval to develop and operate an LPG pipeline from Paradip to Raipur.
- Who
- Dilip Buildcon and Alpha Alternatives are the parties to the power-project stake sale; Karnataka Power Transmission Corporation Limited will be the project’s offtaker.
- What
- Dilip Buildcon agreed to sell its 51% stake in Mekhali Power Transmission Limited after the project is commissioned.
- Where
- The power project is located at Mekhali in Belagavi district, Karnataka.
- When
- The transaction was disclosed on September 9, with commercial operations targeted around mid-2028.
- Why
- The sale supports Dilip Buildcon’s stated “DBL 2.0” strategy of developing long-term contracted assets and monetising them.
Key facts
- Stake being sold
- 51% of Mekhali Power Transmission Limited
- Agreed enterprise value
- Approximately Rs 2,914 crore, subject to closing adjustments and conditions
- Power project cost
- Estimated at Rs 2,171 crore
- Project assets
- A 400 kV/220 kV substation and about 470 circuit kilometres of transmission lines
- Expected operations
- Commercial operations targeted around mid-2028
- LPG pipeline
- A proposed Paradip-Raipur pipeline with construction valued at about Rs 1,800 crore, excluding GST
- Share-price movement
- Dilip Buildcon shares were up 5.72% intraday on September 9; the article also reported a 15.37% decline over the past year
Sources
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