Ceigall India has received a letter of intent from REC Power Development and Consultancy to develop a common transmission system to evacuate power from Lakadia Phase II, Jam Khambhaliya Phase II and Jamnagar Phase I. The capacities at the three sites are seven point five gigawatt (GW), five point five gigawatt and one gigawatt respectively. The project is designated Part B and carries a total estimated cost of Rs 53 billion (bn), with annual transmission charges of Rs 6.0867 bn for a period of 35 years.

Under the terms of the LoI Ceigall will undertake delivery of the transmission assets required for evacuation of the contracted generation capacities and will be accountable for their commissioning and long term operation over the tenure specified. The arrangement sets out annual tariff payments to the transmission developer as transmission charges and defines a long duration revenue stream of Rs 6.0867 bn per year. The concession length of 35 years covers construction, handover and asset operation phases.

The LoI from REC Power Development and Consultancy formalises selection of the developer for this phase of the common transmission system and outlines the financial parameters and operational term. The announcement confirms allocation of resources for Part B and the basis on which transmission charges will be paid to the developer. The transmission system is aimed at enabling evacuation of generation from the three specified sites into the wider grid.

Contract execution and company registration steps will follow standard procedures prior to award of definitive agreements and start of work. The LoI constitutes the preliminary contractual milestone that allows the parties to progress to detailed project documentation and statutory clearances. The notification of the award was first published on three September 2026.