Bajel Projects has secured its largest-ever order worth Rs 1,500 crore from Lakadia A Power Transmission. The project involves constructing 270 km of 765 kV transmission lines in Gujarat to support renewable energy evacuation. As the company holds a 26% stake in the joint venture behind the project, this represents a significant strategic shift toward deeper project involvement and long-term execution capabilities.
Bajel Projects Secures Record Rs 1,500 Crore Transmission Contract
Order Value: Rs 1,500 crore (inclusive of GST).
Execution Timeline: 36 months from the date of the purchase order.
Reader Takeaway: This record order boosts order book visibility but requires disciplined execution over three years as both EPC partner and stakeholder.
What just happened
Bajel Projects Limited has received multiple Letters of Awards (LOAs) from Lakadia A Power Transmission Limited. The contract is valued at Rs 1,500 crore and involves the construction of 270 km of 765 kV double-circuit transmission lines linking Halvad to Vadodara in Gujarat. The scope also covers significant upgrades and work at the Halvad, Vadodara, and South Olpad substations.
Why this matters
This project is vital for the evacuation of 14 GW of renewable energy capacity from key zones in Gujarat, including Lakadia and Jam Khambhaliya. For Bajel Projects, this is the largest transmission contract in its history. It marks a strategic evolution, as the company is participating not just as an EPC contractor but also as a stakeholder in the project-developing joint venture.
JV and Related Party Context
The client, Lakadia A Power Transmission Limited, is owned by AnantGrid Projects One Private Limited (AGPOPL). Bajel Projects holds a 26% stake in this joint venture, with the National Investment and Infrastructure Fund (NIIF) holding the remaining 74%. Bajel confirmed that this transaction was executed at arm’s length following requisite shareholder approvals.
Risks to watch
As a 36-month long-term project, execution risk is the primary concern. Investors should watch for updates on land acquisition, regulatory clearances, and operational milestones. Given the scale, any significant delays in project timelines could impact the company’s capital allocation and revenue recognition projections.
What to track next
Market participants should monitor quarterly updates regarding the progress of these transmission lines. The ability of the management to maintain margins while executing this large-scale infrastructure project will be critical for long-term value creation.