Dilip Buildcon Sells Mekhali Power Project For ₹2,914 Crore

Dilip Buildcon announced on 9 September 2026 that it has executed definitive agreements to divest its stake in Mekhali Power Transmission Limited (MPTL) to Alpha Alternatives Fund Advisors LLP and/or its affiliates. The buyout of the under-construction power transmission project is valued at an enterprise value of approximately ₹2,914 crore, subject to pre-agreed closing adjustments and conditions precedent.

The total estimated project cost for the transmission project is approximately ₹2,171 crore, with an estimated equity investment of ₹429 crore. Dilip Buildcon and Alpha Alternatives will fund the equity portion in a ratio of 51:49.

Alpha Alternatives has agreed to fully acquire Dilip Buildcon’s 51.0% equity stake in MPTL after the project is commissioned, based on the guidelines of applicable agreements.

Devendra Jain, Managing Director and CEO, Dilip Buildcon Limited, said the transaction is an important milestone in the company's DBL 2.0 journey. He added that the partnership enables capital recycling early in the asset lifecycle and supports a more asset-light business model.

Mekhali Power Transmission Limited is developing a 400 kV/220 kV sub-station at Mekhali and approximately 470 circuit kilometres of associated transmission lines in Belagavi District, Karnataka. The project operates on a build-own-operate-transfer (BOOT) basis under a transmission service agreement dated 30 May 2026 with Karnataka Power Transmission Corporation Limited (KPTCL). Commercial operations are targeted around mid-2028.

JM Financial Limited acted as the exclusive financial advisor for Dilip Buildcon, with Khaitan & Co serving as its legal advisor. AZB & Partners advised Alpha Alternatives legally.

The deal marks a significant milestone for Dilip Buildcon, as it looks to recycle capital and focus on its core business. The partnership with Alpha Alternatives will enable the company to achieve its strategic objectives, while also ensuring the successful completion of the Mekhali Power Transmission project.

The project is expected to play a crucial role in the transmission of power in Karnataka, and its completion will help meet the growing demand for electricity in the region. With the deal valued at ₹2,914 crore, it is one of the significant transactions in the power transmission sector in recent times.

In terms of significance, the deal highlights the growing interest of investors in the Indian power transmission sector. It also underscores the importance of partnerships and collaborations in achieving strategic objectives and completing large-scale infrastructure projects.

Overall, the divestment of Mekhali Power Transmission Limited by Dilip Buildcon is a significant development in the power transmission sector, and it is expected to have a positive impact on the company's financials and growth prospects.

The deal is subject to various conditions and approvals, and its completion is expected to be a major milestone for Dilip Buildcon. With the company's focus on recycling capital and achieving a more asset-light business model, the partnership with Alpha Alternatives is expected to be a win-win for both parties.

In conclusion, the sale of Mekhali Power Transmission Limited by Dilip Buildcon is a significant transaction that highlights the company's strategic objectives and its focus on achieving growth and profitability. The deal is expected to have a positive impact on the company's financials and is a major milestone in its DBL 2.0 journey.

The Indian power transmission sector is expected to witness significant growth in the coming years, driven by the growing demand for electricity and the government's focus on developing the sector. The deal between Dilip Buildcon and Alpha Alternatives is a significant development in this context, and it is expected to have a positive impact on the sector as a whole.

For Mumbai residents, the deal is significant as it highlights the growing interest of investors in the Indian infrastructure sector. It also underscores the importance of partnerships and collaborations in achieving strategic objectives and completing large-scale infrastructure projects.

In terms of its impact on the Indian economy, the deal is expected to have a positive impact on the country's growth prospects. The power transmission sector is a critical component of the Indian economy, and the deal between Dilip Buildcon and Alpha Alternatives is expected to contribute to the sector's growth and development.

Overall, the sale of Mekhali Power Transmission Limited by Dilip Buildcon is a significant transaction that highlights the company's strategic objectives and its focus on achieving growth and profitability. The deal is expected to have a positive impact on the company's financials and is a major milestone in its DBL 2.0 journey.