HG Infra Engineering Ltd has announced its receipt of a Letter of Acceptance from the Ministry of Road Transport and Highways (MoRTH) for a significant infrastructure project in Uttar Pradesh. The project involves upgrading a stretch of NH-227B, referred to as the ’84 Kosi Parikrama Marg,’ a culturally significant route in the state. This initiative highlights HG Infra’s growing role in India’s infrastructure development and its commitment to executing large-scale projects.
The awarded project focuses on the improvement and upgradation of a 63.84-km stretch of NH-227B, spanning from Bahuvan Madar Majha to Jagarnathpur. The development will involve converting the existing roadway into a two-lane road with paved shoulders to accommodate increasing traffic volumes and ensure safer travel.
The project was awarded under the Hybrid Annuity Mode (HAM), a model that shares financial risk between the government and private contractors. HG Infra’s winning bid is valued at ₹763.11 crore, while MoRTH has estimated the project cost at ₹898.5 crore. This financial structure ensures cost efficiency and quality execution, with the contractor receiving partial payments during construction and the remaining amount as annuities over a specified period.
The ’84 Kosi Parikrama Marg’ holds immense cultural and spiritual significance, as it is frequently used by pilgrims and tourists visiting the region. The construction timeline is set at two years.
As of December 10, 2024, 11:35 AM, shares of HG Infra are trading at ₹1,533.00 per share up 5.42% from its previous close. Over the last month, the stock has seen a surge of 20.54%. The stock has a 52-week high and 52-week low of ₹1879.90 per share and ₹805.10 per share respectively.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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