Ceigall India shares gain 4% after securing LoI for Rs 5,300 crore power transmission project
Ceigall India shares rose nearly 4% after the company received a Letter of Intent from REC Power Development and Consultancy for a Rs 5,300 crore power transmission project in Gujarat. The project includes a 765/400 kV AIS substation and around 300 km of transmission lines, with 36 months of execution followed by a 35-year operational period and annual transmission charges of Rs 608.67 crore.
Ceigall India shares surged nearly 4% on Friday following the company's receipt of a Letter of Intent (LoI) from REC Power Development and Consultancy Limited. The agreement pertains to a significant power transmission project valued at around Rs 5,300 crore, including Goods and Services Tax (GST). The project includes the development of a 765/400 kV AIS substation and around 300 km of transmission lines under a tariff-based contract agreement.
Ceigall India will have a project execution period of 36 months, followed by an operational phase of 35 years from the scheduled commissioning date. The company clarified that the order was awarded by a domestic entity and that neither the promoter nor its group companies have any interest in REC Power Development and Consultancy, nor does the contract fall under related-party transactions.
The latest order bolsters Ceigall India's position in the power transmission sector and adds a substantial long-term project to its order pipeline.
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