TBCB has been very positive for the power transmission sector: Ceigall India
- December 12, 2025
Gurugram-headquartered Ceigall India, a very prominent EPC and annuity player in the roads segment, very recently entered the power transmission development space by winning an intrastate scheme in Maharashtra under the tariff-based competitive bidding (TBCB) framework. In this exclusive interaction, we have Ramneek Sehgal, Chairman & Managing Director, Ceigall India Ltd, discussing the company’s strategic foray in power transmission development, as well as other areas like solar power and energy storage. Sehgal feels that the TBCB philosophy has had a positive impact, introducing both transparency and competition. More importantly, TBCB is deepening the pool of long-term asset owners. An interview by Venugopal Pillai.
What inspired the diversification of Ceigall India Ltd into power transmission development?
Ceigall has built deep expertise in EPC (engineering, procurement, construction) and infrastructure — roads, tunnels, expressways, etc. As an EPC company, Ceigall already has project execution capabilities, access to capital, and operational discipline — all of which are helpful for building transmission substations. Ceigall India has secured the letter of intent from REC for establishment of 400/220kV Velgaon GIS substation through the tariff-based competitive bidding mechanism.
By entering new areas like renewable energy & power transmission, we are broadening our portfolio into a high-growth, capital-intensive sector that is closely aligned with our core EPC skill set.
We aim to align with energy transition and we feel that the renewable energy space will define the future of infrastructure and sustainable development.
Entering power transmission development means long-term recurring cash flows, via the transmission service agreement, and a stable asset base, which complements more transactional EPC business. By stepping into RE and power transmission, Ceigall is positioning itself as not just a builder, but a sustainable infrastructure company.
Now that Ceigall India has received the letter of intent for the Velgaon intrastate scheme in Maharashtra, how do you see matters progressing? By when is Ceigall India likely to start pre-project work?
Ceigall India has already received the LoI and an invitation to execute the share purchase agreement (SPA) with REC for acquisition of the project SPV. The transmission service agreement (TSA) is expected to be signed soon. Land for the Velgaon GIS project has already been identified, and pre project activities and site mobilisation are likely to commence as soon as the TSA is signed. The target for project completion within 24 months, in line with the contractual schedule.
As of now, what challenges do you foresee in executing the Velgaon scheme, especially given that it is a GIS substation? Do you anticipate RoW challenges for the various LILOs envisaged in the project?
Ceigall is well prepared to execute the Velgaon scheme, and no major RoW or GIS specific challenges are anticipated at this stage.
We are already ready to start pre project activities and site mobilisation and are only awaiting signing of the TSA. Around 12 acres of land is required for the GIS substation; this parcel has already been identified, and acquisition can commence immediately after TSA signing, so no significant RoW issues are expected for the substation itself.
For the line in line out (LILO) connections, the scope is limited and confined within a short radius of the substation. The following LILO connections are envisaged in the Velgaon scheme:
- 400kV LILO on Tarapur–Kudus II D/C line: approx. 1.50 km
- 220kV LILO on Dahanu–Ghodbunder D/C line: approx. 0.60 km
- 220kV LILO on Boisar–Borivali S/C line: approx. 0.25 km
- 220kV LILO on Dahanu–Versova S/C line: approx. 0.25 km
- 220kV LILO on Boisar–Versova S/C line: approx. 0.25 km
Given these short line lengths and proximity to existing corridors, we do not foresee any major RoW challenges for the LILOs either, beyond normal local coordination and permissions.
We understand that the Velgaon project cost is around Rs.380 crore. How do you intend to finance the same?
In fact, the total project capex for Velgaon is estimated at around Rs.522 crore (including taxes). We intend to finance this on an 80:20 basis, with approximately 80 per cent of the cost funded through bank debt and the balance 20% being infused as sponsor contribution, which is equity or subordinate support.
Does the Velgaon project signify Ceigall India’s entry into Maharashtra? In the sense, has Ceigall India executed other projects (e.g. roads, highways) in Maharashtra?
Yes, Velgaon is our first power transmission development project in Maharashtra, but it is not our first presence in the state.
Ceigall already has an established footprint in Maharashtra, having executed the EPC work for the “Design and Construction of 4 Nos. (3 LVUPs and 1 Flyover) standalone 6-lane structures on the Gonde–Vadape section. We are, currently undertaking the O&M for these assets as well.
Several EPC contractors, mainly in the roads & highways sector, are entering the power transmission development space through interstate and intrastate schemes. What is your overall view on the matter?
As India accelerates transmission build-out for renewable integration and grid strengthening, having more credible EPC-backed developers increases competition, improves pricing and timelines, and deepens the pool of long-term asset owners, provided players remain selective and maintain financial discipline.
What is your general opinion on the tariff-based competitive bidding (TBCB) mechanism? In particular, do you feel that there could be cases where tariff bids are unrealistically low, thereby affecting RoI?
TBCB has been very positive for the power transmission sector. It has introduced both transparency and competition. There can be instances of over aggressive bids; in our view, only those bids that are backed by realistic assumptions on capex, RoW, timelines, financing costs and long-term O&M will ultimately deliver a sustainable RoI over a 30–35 year concession period.
Would Ceigall India also be interested in bidding for interstate (ISTS) schemes under the TBCB framework?
Ceigall is exploring potential opportunities across renewables, which is solar and BESS, sa well as power transmission into various other states with healthy and favourable policy framework.
What about intrastate schemes in other states like Karnataka, Uttar Pradesh, etc?
Absolutely. While our immediate focus is on deepening our footprint in our current markets, we are actively evaluating opportunities to expand into additional states where policy support and demand for clean energy are strong.
Ceigall is exploring possible avenues of high and attractive return domains into renewables. Our approach is to enter these sectors selectively—guided by market maturity, project viability, and partnerships that align with our long-term strategy.
At the policy level, what recommendations do you make to attract more private sector participation in the power transmission development space?
At the policy level, three things are critical to attract more private participation in transmission:
Stable, predictable framework: Consistent TBCB rules and clear multi-year visibility on upcoming interstate and intrastate schemes.
Balanced risk allocation: Standardised TSAs with fair treatment of RoW, change in law and payment security so projects remain bankable.
Easier long term financing: Enabling deeper debt and InvIT markets so long duration capital can flow at competitive rates into operational transmission assets.
Speaking of projects under tariff-based bidding, Ceigall India has also won solar energy-related projects in Maharashtra, and a BESS project in Madhya Pradesh. Tell us more.
Yes, Ceigall India has secured letters of intent from MSEDCL to develop 337 MW solar power and stands successful bidder (L1) for RUMSL (Rewa Ultra Mega Solar Ltd) for 300 MWAC grid-connected ground-mounted solar photovoltaic project with battery energy storage systems (BESS) at Morena Solar Park, Madhya Pradesh.
Ceigall India has tremendous experience in the roads/highways sector, both as contractor and developer. How do you intend to leverage this collective expertise in the newly entered fields like power transmission, renewable energy and BESS?
Ceigall intends to leverage its roads and highways experience by applying the same project execution discipline, financial strength, and risk-management framework to power transmission, renewables and BESS.
Over the years, Ceigall has evolved from a Punjab-focused road EPC player into a diversified infrastructure platform with around 12 verticals and a presence across 12 states, consistently delivering complex, time bound projects. This has created strong in-house capabilities in design, engineering, procurement, construction management, quality control, HSE, and O&M, which are directly transferable to high voltage substations, transmission lines, utility scale solar and storage assets.
On the financial side, Ceigall’s track record with lenders, rating agencies and grantors of concession in the roads/highways space provides credibility for raising long tenor project finance and structuring bankable contracts in new asset classes. The company intends to use its experience in concession agreements, traffic/annuity risk, and lifecycle O&M to underwrite and manage similar long duration risks in transmission TSAs, PPAs and BESS contracts, while selectively partnering with technology/OEM players where required to complement its strengths.