Dilip Buildcon has secured two new projects worth a combined Rs 5,250 crore projects in Bihar and Karnataka. According to its regulatory filing, the company secured a Rs 3,400 crore road project in Bihar from Adani Road Transport and a Rs 1,850 crore power transmission project in Karnataka,
Dilip Buildcon bags Rs 3,400 crore project from Adani Road Transport
Dilip Buildcon received a letter of award (LoA) worth Rs 3,400 crore from Adani Road Transport (ARTL) for the construction of the Ganga Path road project in Bihar. According to a regulatory filing by the company, the project will be executed on a back-to-back EPC basis, and the employer of the project is the Bihar State Road Development Corporation.
The project involves the construction of the Ganga Path connecting Sultanganj, Bhagalpur and Sabour Road, with a total length of 41.09 km.
Under the contract, Dilip Buildcon will handle engineering, design, procurement, construction, testing and commissioning of the project on EPC mode.
The construction period for the project is 42 months from the commencement date.
Dilip Buildcon wins Rs 1,850 crore Karnataka power transmission project
On the same day, the company also won a Rs 1,850 crore power transmission project in Karnataka. In a regulatory filing, Dilip Buildcon said it has been selected as the successful bidder by REC Power Development and Consultancy Limited (RECPDCL), which acted as the bid process coordinator on behalf of the Government of Karnataka.
The project involves setting up a 400 kV sub-station at Mekhali in Belagavi district along with associated transmission lines. The concession period for the project is 35 years from the commercial operation date (COD).
Company to acquire 100% stake in project SPV
As part of the award, Dilip Buildcon will acquire 100% equity in the project’s special purpose vehicle (SPV) and act as the transmission service provider. The company will be responsible for the development, ownership, operation and maintenance of the intra-state transmission system during the concession period.
The construction and commissioning of the project are scheduled to be completed within 24 months from the effective date, as per the request for proposal. The project will be executed under a tariff-based annuity model.
Dilip Buildcon share price
The share price of Dilip Buildcon has surged nearly 3.31% in Friday trade. On YTD basISs the stock has increased 5.04% so far this year.