INDIA —Alpha Alternatives has agreed to acquire the remaining 51 percent equity stake in Mekhali Power Transmission Limited from Dilip Buildcon Limited following the asset's commissioning, under definitive agreements executed between the parties. The buyout places an enterprise valuation of approximately INR 29.14 billion on the project, subject to standard closing adjustments and regulatory approvals. Prior to completion, both entities will jointly finance the equity component of the INR 21.71 billion total project cost in a 51 to 49 ratio, representing an aggregate equity outlay of roughly INR 4.29 billion.
Mekhali Power Transmission Limited holds a build-own-operate-transfer mandate to construct a 400-kilovolt substation and approximately 470 circuit kilometers of transmission lines in the Belagavi district of Karnataka. Developed under a transmission service agreement executed with Karnataka Power Transmission Corporation Limited, commercial operations are slated for mid-2028. Dilip Buildcon Limited is an Indian infrastructure development firm specializing in engineering, procurement, and construction services across transport, mining, and energy sectors. Alpha Alternatives Fund Advisors LLP is an Indian alternative investment platform managing liquid and illiquid strategies across infrastructure and real assets.
The deal reflects a growing trend among Indian engineering contractors to adopt asset-light business models by offloading operational or near-operational infrastructure assets to specialized institutional investors. By securing an exit mechanism ahead of commercial operations, primary developers mitigate long-term cash flow exposure while recycling equity into prospective pipeline projects. For power utility off-takers and regional grid operators, institutional ownership brings long-term capital stability to crucial power delivery networks.
From an investor perspective, the transaction highlights sustained private capital appetite for regulated, long-duration energy transmission infrastructure in India. Monetizing equity stakes before full commercial operation allows construction companies to deleverage balance sheets and reduce capital intensity. Consequently, strategic co-investments between engineering firms and financial sponsors are likely to expand as India continues upgrading its regional electricity transmission networks.
