Dilip Buildcon Divests Stake in Mekhali Power Transmission to Alpha Alternatives

Dilip Buildcon, a multi-asset infrastructure company, has announced execution of definitive agreements for divestment of its stake in Mekhali Power Transmission, the SPV undertaking the company's under-construction power transmission project to Alpha Alternatives Fund Advisors LLP and its affiliates and funds managed by Alpha Alternatives Fund Advisors LLP. The total project cost of the transmission project is approximately INR 2,171 Crore. 

Mekhali Power Transmission is engaged in developing, designing and engineering a 400- kilovolt sub-station power transmission project extending to approximately 470 circuit kilometres situated in Belagavi District, Karnataka. 

The transmission project is being developed pursuant to a Transmission Service Agreement dated May 30, 2026, with Karnataka Power Transmission Corporation (KPTCL), on a Build-Own-Operate-Transfer (BOOT) basis, with commercial operations targeted for around mid-2028. 

DBL and Alpha Alternatives will fund the equity portion of the project cost in a 51:49 ratio. The project has an estimated total cost of approximately INR 2,171 crore, including an estimated equity investment of approximately INR 429 crore, which will be funded by DBL and Alpha Alternatives in the agreed ratio. 

Alpha Alternatives has also agreed to fully acquire DBL’s 51.0 percent equity stake following the commissioning of the project, subject to the guidelines and terms of the applicable agreements. The proposed buyout is valued at an enterprise value of approximately INR 2,914 crore, subject to pre-agreed closing adjustments and conditions precedent.

The divestment represents a value-unlocking opportunity for DBL and is aligned with the company’s strategy of building an asset-light, multi-asset development platform focused on generating recurring cash flows and enabling capital recycling for reinvestment in new opportunities. The transaction also supports the company’s continued efforts to deleverage and strengthen its balance sheet, while further deepening its existing long-term partnership with Alpha Alternatives. 

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 highquality, long-term infrastructure assets and see strong growth potential in India’s power and renewable energy sectors.” 

Speaking on the development, Devendra Jain, Managing Director and CEO, Dilip Buildcon, 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 is subject to the fulfilment of the terms and conditions set out in the definitive agreements, and receipt of requisite regulatory approvals.

JM Financial acted as the exclusive financial advisor to Dilip Buildcon on sale of Transmission asset to Alpha Alternatives.