Dilip Buildcon has been selected as the successful bidder by REC Power Development and Consultancy (RECPDCL) for developing and operating an intra-state electricity transmission system in Maharashtra. The company disclosed the award in a stock exchange filing.

The project includes establishing a 400 kV gas-insulated switchgear (GIS) Solapur/Paranda switching station in Dharashiv district. It will be implemented on a build-own-operate-transfer basis through the tariff-based competitive bidding route.

The engineering, procurement and construction (EPC) component awarded to Dilip Buildcon is valued at Rs. 12.65 bn, excluding goods and services tax. RECPDCL is acting as the bid process coordinator on behalf of the Maharashtra State Transmission Utility.

Under the project terms, Dilip Buildcon will acquire 100 per cent equity in the project special purpose vehicle and serve as the transmission service provider. Its responsibilities will cover the development, ownership, operation and maintenance of the intra-state transmission system under a transmission service agreement.

The work scope includes financing, design, engineering, procurement, construction, testing, commissioning, operation and maintenance of the transmission assets. Construction and commissioning must be completed within 24 months of the effective date set out in the request for proposal, after which the system will be operated for 35 years from the commercial operation date.

Dilip Buildcon said the project had been awarded by a domestic entity and would be implemented under the tariff-based competitive bidding model. The company also stated that neither its promoter nor promoter group companies had an interest in the awarding entity, and that the transaction did not qualify as a related-party transaction.