Shares of HG Infra Engineering Ltd skyrocketed 10% during the early trading hours on 19 August after it announced receiving a Letter of Intent (LOI) from REC Power Development and Consultancy Ltd (RECPDCL) for the construction of two high-voltage substations and their associated transmission lines in Uttar Pradesh. 

The LOI was received on August 18, 2026, adding another power transmission project to the company’s growing infrastructure portfolio.

The project involves the construction of 220/132/33 kV Air Insulated Substations (AIS) at Ranipur in Mau and Chunar in Mirzapur, along with the associated transmission lines. The project has been awarded through a tariff-based competitive bidding process, a mechanism used for developing transmission infrastructure in India.

The order is significant for HG Infra as the company has been expanding beyond its traditional road construction business into the power transmission and renewable energy infrastructure segment. 

Entry into the transmission sector gives the company an additional avenue for growth as India’s electricity network is expanded to support rising power demand and the rapid addition of renewable energy capacity.

The project also strengthens HG Infra’s relationship with the REC Group. RECPDCL is a wholly owned subsidiary of REC Ltd, which operates under the Ministry of Power. Winning projects through competitive bidding provides HG Infra with an opportunity to build its presence in the transmission infrastructure market.

The development comes at a time when India is investing heavily in transmission infrastructure to connect new generation capacity, particularly renewable energy projects, with major consumption centres. New substations and transmission lines are essential for improving grid capacity and ensuring reliable electricity supply.

However, by 2:40 pm, the shares had shed all their early gains and were trading 2.91% higher at Rs 522.50 on NSE.

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