Ashoka Buildcon Secures LOI from REC for Large-Scale Power Transmission Project
Ashoka Buildcon Limited has secured a Letter of Intent (LOI) from REC Power Development and Consultancy Limited regarding the establishment of a major power transmission project. The contract pertains to the Establishment of 400/220/132 kV AIS Sakoli in Bhandara district.The LOI was issued by REC Power Development and Consultancy Limited on August 13, 2026. This engagement stems from Ashoka Buildcon’s bid submitted under a Tariff Based Competitive Bidding (TBCB) process.
The project involves the transmission infrastructure for Sakoli in Bhandara district. The terms of the contract mandate specific financial commitments and timelines for the company. As per the agreement, Ashoka Buildcon must provide a Performance Bank Guarantee amounting to Rs. 16.70 Crore within 10 days of the LOI date.
The project’s scope includes a significant annual consideration of Rs. 1265.37 Million over a 35-year period for Annual Transmission Charges.
Project Timeline and Structure
The agreement outlines clear timelines for both execution and long-term maintenance. The stipulated Completion Period for the project is 24 months, followed by an Operation and Maintenance Period of 35 years.Key details regarding the contract are summarized below:
| Detail | Specification |
|---|---|
| Counterparty Awarding Order | REC Power Development and Consultancy Limited (LOI dated August 13, 2026) |
| Project Nature | Establishment of 400/220/132 kV AIS Sakoli in Bhandara District |
| Contract Type | Domestic Entity through Tariff Based Competitive Bidding (TBCB) |
| Financial Consideration | Rs. 1265.37 Million, annually, for 35 years |
| Performance Guarantee Requirement | Rs. 16.70 Crore within 10 days of LOI issuance |
| Execution Period | Completion Period: 24 months; O&M Period: 35 years |
ASHOKA Stock Price Movement
Shares of Ashoka Buildcon Limited slipped by 1.32% to close at ₹112.40 today, registering a decline of ₹1.50 from the previous day's close. The stock saw robust trading volume in the session, with 830,769 shares recorded as traded.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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