Infrastructure major Ceigall India Limited (CIL) has marked a significant entry into the renewable energy ecosystem by securing a contract to establish a 50 MW Standalone Battery Energy Storage System (BESS) in Punjab. The project was awarded by the Punjab State Power Corporation Limited (PSPCL) through a highly competitive Tariff-Based Global Competitive Bidding process.
This strategic win highlights Ceigall’s shift from traditional road and highway EPC (Engineering, Procurement, and Construction) towards high-tech grid infrastructure, aligning with India’s broader energy transition goals.
Project Scope and Financials
- The estimated cost of this project is approximately ₹125 crore involves the setting up, operation, and maintenance of the standalone BESS facility.
- Following an e-reverse auction, Ceigall India secured the contract with a competitive tariff of ₹2.99 per kWh.
Under the terms of the Battery Energy Storage Purchase Agreement (BESPA), Ceigall India will supply power to the Punjab grid for a long-term duration of 12 years. The agreement provides the company with high revenue visibility and a stable cash flow from the energy sector over the next decade.
Key Execution Timelines
The development is set on a fast-track schedule to support Punjab’s grid stability:
- Work Execution Phase: 18 months from the date of the award.
- Operational Period: 12 years starting from the Scheduled Commissioning Date (SCD).
- Maintenance: Ceigall will be responsible for the end-to-end upkeep of the plant throughout the operational phase.
The news was met with optimism on the stock exchanges. Following the regulatory filing under Regulation 30 of SEBI (LODR), Ceigall India’s shares rose by 0.97%, touching an intraday high of ₹359.40. Investors are increasingly viewing the company as a diversified infrastructure player capable of tapping into the lucrative Battery Energy Storage market, which is essential for managing India’s growing solar and wind capacity.
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