Dilip Buildcon has executed definitive agreements to divest its 51% stake in Mekhali Power Transmission to Alpha Alternatives Fund Advisors LLP and its affiliates. The transaction involves the under-construction power transmission project in Karnataka, with an estimated total project cost of ₹2,171 crore.
Mekhali Power Transmission is developing a 400 kV substation and approximately 470 circuit kilometres of transmission infrastructure in Belagavi district. The project is being implemented under a Build-Own-Operate-Transfer (BOOT) framework pursuant to a Transmission Service Agreement with Karnataka Power Transmission Corporation (KPTCL). Commercial operations are targeted for mid-2028.
The project’s estimated equity requirement is around ₹429 crore, which is being funded by Dilip Buildcon and Alpha Alternatives in a 51:49 ratio. Following commissioning, Alpha Alternatives has agreed to acquire Dilip Buildcon’s remaining 51% equity stake, subject to applicable agreements, regulatory approvals and other conditions. The proposed buyout carries an enterprise value of approximately ₹2,914 crore, subject to closing adjustments.
For Dilip Buildcon, the transaction is part of its asset-light strategy, enabling capital recycling, balance-sheet strengthening and continued investment in new infrastructure opportunities. The company said the partnership also supports its focus on long-duration contracted assets and recurring cash flows.
