Ceigall India Limited shares moved higher on Friday after the company announced that its subsidiary, Ceigall Bathinda Dabwali Highways Private Limited, has received a provisional certificate from the National Highways Authority of India for a major highway project in Punjab.

Project Specifications and Commercial Operations

The infrastructure development project represents a significant milestone for the company's northern market expansion:

The project has been declared fit for entry into commercial operations with effect from December 22, 2025. The company confirmed that this project does not fall under related party transactions.

Stock Performance and Market Response

The market responded positively to the development, with shares showing strong performance:

Recent Contract Wins

This development follows another significant contract win announced earlier this week. The infrastructure construction company emerged as the lowest bidder for a new contract worth around ₹550.00 crores from Madhya Pradesh Urja Vikas Nigam Ltd. The project involves setting up 130 MW (AC) of grid-connected solar photovoltaic power plants under the Surya Mitra Krishi Feeders Scheme–PM KUSUM-C.

The combination of the Punjab highway project's commercial readiness and the recent solar power contract win demonstrates Ceigall India's diversified project portfolio and strong execution capabilities across infrastructure and renewable energy sectors.

Ceigall India has incorporated a wholly owned subsidiary, Ceigall Green Energy MP Limited, to execute its ₹550 crore solar power project awarded by Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL). The subsidiary was incorporated on January 5, 2026, as a Special Purpose Vehicle (SPV) for the 130 MW solar project under the PM KUSUM-C scheme.

Official Contract Award and Project Details

The infrastructure development company had earlier received Letters of Award from MPUVNL for Solar PV based Power Plants (SPP) with an aggregate capacity of 130 MW (AC) under the Surya Mitra Krishi Feeders Scheme - PM KUSUM-C. The project involves setting up grid-connected solar power plants across two districts in Madhya Pradesh.

Subsidiary Incorporation Framework

Ceigall Green Energy MP Limited has been incorporated as a wholly owned subsidiary under the Companies Act, 2013, specifically to implement the MPUVNL solar project. The company has invested ₹1.00 lakh as cash consideration for 100% shareholding in the subsidiary, which operates in the renewable energy industry.

Project Execution Timeline and Structure

The solar power project involves comprehensive design, engineering, procurement, construction, testing, commissioning, and operation of grid-connected solar power plants. The project structure provides long-term revenue visibility through a 25-year operational period with Power Purchase Agreement from the Schedule Commercial Operation Date.

Strategic Impact and Management Vision

The subsidiary formation demonstrates Ceigall India's structured approach to executing large-scale renewable energy projects. Chairman Managing Director Ramneek Sehgal had earlier emphasized the project's significance in the company's renewable energy journey, highlighting its contribution to Madhya Pradesh's clean energy goals and India's sustainable infrastructure expansion. The SPV structure enables focused project execution while maintaining regulatory compliance and operational efficiency for the 130 MW solar power initiative.