Dilip Buildcon Limited (DBL) has entered into definitive agreements to divest its stake in Mekhali Power Transmission Limited, the special purpose vehicle developing the company’s under-construction power transmission project in Belagavi, Karnataka. The stake will be sold to Alpha Alternatives Fund Advisors LLP and/or its affiliates or funds managed by the firm.
The transmission project has an estimated total cost of approximately ₹2,171 crore. Mekhali Power Transmission is developing, designing and engineering a 400-kilovolt substation and associated transmission system extending across approximately 470 circuit kilometres in Belagavi district.
The project is being developed under a Transmission Service Agreement signed with Karnataka Power Transmission Corporation Limited (KPTCL) on May 30, 2026. It is being implemented on a build-own-operate-transfer (BOOT) basis, with commercial operations targeted for around mid-2028.
Under the transaction structure, DBL and Alpha Alternatives will fund the equity requirement of the project in a 51:49 ratio. The estimated equity investment for the project is approximately ₹429 crore. Alpha Alternatives has also agreed to acquire DBL’s 51% equity stake after commissioning of the project, subject to the terms of the applicable agreements. The proposed buyout is valued at an enterprise value of approximately ₹2,914 crore, subject to pre-agreed closing adjustments and conditions precedent.
The transaction forms part of DBL’s strategy to develop a diversified infrastructure platform with a focus on long-duration contracted assets and recurring cash flows. The company said the divestment will enable capital recycling, support new investment opportunities and contribute to its efforts to strengthen its balance sheet.
Kaushal Biyani, Senior Partner and Head, Private Markets, Alpha Alternatives, said, “This transaction execution reaffirms our confidence in our strategic partner, Dilip Buildcon, and its strong execution capabilities across infrastructure sectors. We continue to deepen our investment in high-quality, long-term infrastructure assets and see strong growth potential in India’s power and renewable energy sectors.”
Devendra Jain, Managing Director and CEO, Dilip Buildcon Limited, said, “This transaction execution marks an important milestone in our DBL 2.0 journey as we build a multi-assets infrastructure platform anchored by long-duration, contracted assets. Our partnership with Alpha Alternatives across this transmission project enables us to recycle capital early in the asset lifecycle, while maintaining our disciplined focus on strengthening our balance sheet and building a more asset-light business.”
The transaction remains subject to the terms and conditions of the definitive agreements and receipt of requisite regulatory approvals. JM Financial Limited acted as exclusive financial advisor to DBL. Khaitan & Co was its legal advisor, while AZB & Partners advised Alpha Alternatives.
Established in 1987, DBL operates across roads and highways, rail and metro, airports, mining, ICT, industrial corridors, irrigation, tunnels, bridges, urban development, renewable energy, power transmission and other infrastructure segments. The company has operations across 20 states and one Union Territory.
