Engineering, procurement and construction company Dilip Buildcon’s board of directors has approved the divestment of its stakes in an under-construction solar project in Madhya Pradesh and a power transmission project in Karnataka to Alpha Alternatives Fund Advisors.

The projects have a combined cost of approximately ₹84 billion (~$881.58 million).

The consideration for the transaction will be determined through a phased subscription and closing mechanism, in accordance with the terms agreed between the parties.

The transaction covers Dilip Buildcon’s stakes in its two special-purpose vehicles, DBL Renewable and Mekhali Power Transmission.

DBL Renewable is developing a 1.36 GW grid-connected solar photovoltaic portfolio across 163 locations in Madhya Pradesh through 10 SPVs.

The projects are being developed under the feeder-level solarization component of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan Component C program.

Power generated by the solar projects will be supplied under a long-term power purchase agreement with Madhya Pradesh Power Management Company, which will serve as the offtaker for the portfolio.

Mekhali Power Transmission is developing a 400 kV/220 kV substation at Mekhali and approximately 470 circuit kilometers of associated transmission lines in Belagavi district, Karnataka.

In December 2025, Dilip Buildcon was declared the L-1 bidder in REC Power Development and Consultancy’s auction to set up an intrastate transmission system comprising a 400 kV substation and associated transmission lines in Karnataka’s Belagavi district, on a build, own, operate basis.

Karnataka Power Transmission Corporation will serve as the offtaker under a transmission service agreement.

Dilip Buildcon said the divestment forms part of its strategy to recycle capital, reduce debt, strengthen its balance sheet, and develop an asset-light infrastructure platform.

The company said it is strategically transitioning from a pure-play engineering, procurement, and construction contractor to a diversified, multi-asset infrastructure platform.

JM Financial acted as Dilip Buildcon’s exclusive financial adviser for the transaction, while Khaitan & Co served as its legal adviser.

At the Mercom India Renewable Summit 2026,  industry stakeholders highlighted that right-of-way and land acquisition challenges continue to limit visibility on transmission project timelines, slowing grid infrastructure expansion.