Dilip Buildcon Limited (DBL) has executed definitive agreements with Alpha Alternatives for the divestment of its 51% equity stake in Mekhali Power Transmission Limited (MPTL), a special purpose vehicle developing an under-construction power transmission project in Karnataka.
The transmission project has an estimated total project cost of ₹2,171 crore and is being developed in Belagavi district. MPTL is responsible for developing, designing and engineering a 400-kilovolt (kV) substation power transmission project spanning approximately 470 circuit kilometres.
Under the transaction, DBL and Alpha Alternatives had partnered to fund the equity portion of the project in a 51:49 ratio. Alpha Alternatives has now agreed to fully acquire DBL’s 51% equity stake after the project is commissioned.
The proposed buyout carries an enterprise value of approximately ₹2,914 crore, subject to pre-agreed closing adjustments and conditions precedent.
The project is being developed under a Build-Own-Operate-Transfer (BOOT) model pursuant to a Transmission Service Agreement signed with Karnataka Power Transmission Corporation Limited (KPTCL) on May 30, 2026. Commercial operations are targeted for around mid-2028.
The divestment forms part of DBL’s “DBL 2.0” asset-light strategy, which focuses on capital recycling and reducing leverage on the company’s balance sheet. By monetising its stake after commissioning, the infrastructure company aims to unlock capital from the transmission asset while transferring its long-term ownership interest to Alpha Alternatives.
Power transmission infrastructure is becoming increasingly important as India expands its electricity generation capacity and integrates renewable energy into the grid. Large transmission projects are expected to support the movement of power across regions and strengthen grid infrastructure.
For Alpha Alternatives, the transaction provides an opportunity to acquire an interest in a large-scale transmission asset, while DBL can recycle capital into other infrastructure opportunities.
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