Dilip Buildcon to Sell 51% Stake in Karnataka Power Transmission Project for ₹2,914 Crore

Indian infrastructure developer Dilip Buildcon has signed definitive agreements to sell a 51% stake in its under-construction Karnataka power transmission project to Alpha Alternatives, in a transaction carrying an enterprise value of around ₹2,914 crore.

The project is being developed through Mekhali Power Transmission Limited in Belagavi district and includes a 400 kV substation and approximately 470 circuit kilometres of transmission lines. Its total project cost is estimated at ₹2,171 crore.

Project to Strengthen Karnataka Transmission Network

Mekhali Power Transmission is developing the new transmission infrastructure under a build-own-operate-transfer (BOOT) model.

The project is backed by a Transmission Service Agreement with Karnataka Power Transmission Corporation Limited (KPTCL), which will act as the offtaker over the asset’s operating life.

The new substation and transmission lines will add infrastructure needed to move electricity across Karnataka as the state expands generation capacity and prepares for higher demand from industry, electric vehicles and data centres. Karnataka is targeting installed power capacity of 66GW by 2030, up from more than 39GW currently.

Alpha Alternatives Takes Majority Stake

Under the agreement, Alpha Alternatives Fund Advisors and its affiliates or managed funds will acquire the majority interest in the project.

Dilip Buildcon is expected to retain its stake during construction, with the transaction progressing through regulatory approvals and other closing conditions. The project is expected to reach commercial operations by mid-2028.

The transaction forms part of a broader partnership between Dilip Buildcon and Alpha Alternatives covering transmission and renewable-energy infrastructure.

Deal Supports Dilip Buildcon’s Asset-Light Strategy

The divestment is aligned with Dilip Buildcon’s “DBL 2.0” strategy, which focuses on recycling capital from infrastructure projects and building a more asset-light business with recurring long-term revenues.

In August, the company announced plans to divest interests in both Mekhali Power Transmission and DBL Renewable, which is developing a 1,363MW AC / 1,977MWp DC solar portfolio in Madhya Pradesh. The combined project cost of the transmission and renewable assets is around ₹8,400 crore.

Alpha Alternatives is also expected to co-invest during the construction phase, reducing the amount of equity Dilip Buildcon needs to commit before the assets become operational.

Power Infrastructure Investment Accelerates in Karnataka

The project comes as Karnataka prepares for significant growth in electricity consumption.

The state expects power demand to roughly double over the next decade, driven by industrial expansion, data centres, electric vehicles and broader economic growth.

Alongside new generation capacity, Karnataka is investing in transmission networks, pumped-storage projects, battery energy storage and smart-grid infrastructure to maintain reliability as more renewable power enters the system.

The Mekhali project will form part of that wider grid build-out, adding high-voltage transmission capacity to support future electricity flows.

Transmission Assets Draw Long-Term Infrastructure Capital

Dilip Buildcon’s transaction also reflects growing investor interest in operational and under-construction power infrastructure.

Transmission assets typically generate long-term contracted revenues once operational, making them attractive to infrastructure funds seeking predictable cash flows.

For Dilip Buildcon, bringing Alpha Alternatives into the project allows capital to be recycled while construction continues, while the investor gains exposure to a major transmission asset expected to enter commercial operation in 2028.

The agreement therefore combines grid expansion, private infrastructure investment and capital recycling as India accelerates investment across its electricity network.