New Delhi: EPC player Ceigall India on Tuesday said it has received a letter of intent from an arm of state-owned REC to set up a gas-insulated substation at a cost of Rs 450 crore.
The project has been secured under a Tariff Based Competitive Bidding (TBCB) mechanism, Ceigall India said in an exchange filing.
The company said it has received a Letter of Intent (LOI) from REC Power Development and Consultancy Limited (RECPDCL) for the establishment of a 400/220 kV Gas Insulated Substation (GIS) in Velgaon, Maharashtra.
The Velgaon GIS project will be completed over a two-year period, followed by a 35-year operation and maintenance term.
The company informed that Rs 58.5 crore is the annuity per year for 35 years, against EPC cost of around Rs 450 crore.
Ramneek Sehgal, Chairman & Managing Director, Ceigall India said, "The Velgaon substation will be a crucial addition to the regional power network, and we look forward to executing it with precision and excellence."
Ceigall India is an infrastructure engineering, procurement, and construction (EPC) company undertaking specialised structural works such as elevated roads, flyovers, bridges, railway overbridges, tunnels, highways, expressways, and runways.
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