Ashoka Buildcon Limited, a leading infrastructure development company, has been awarded a Letter of Award (LOA) by the National Highways Authority of India (NHAI) for the development of a 4-lane economic corridor in the state of West Bengal. The project, which is valued at Rs. 1,391 crore (excluding GST), will be executed under the Hybrid Annuity Mode. This is a significant development in the company’s growth, further solidifying its position in the infrastructure sector.

Details of the Awarded Project

The project pertains to the development of a 4-lane Economic Corridor from Bowaichandi to Guskara-Katwa Road (Km 89.814 to Km 133.000) along the NH 116A. This project is a critical part of the road infrastructure development in West Bengal and is expected to improve connectivity and boost the economic potential of the region.

The accepted Bid Project Cost for this venture stands at Rs. 1,391 crore excluding GST, and the project is expected to be completed within 910 days, including the monsoon season.

Significant Terms and Conditions

The project will be executed under the Hybrid Annuity Mode (HAM), which is a PPP (Public-Private Partnership) model, where both the government and the private sector share the project’s financial risk. The hybrid nature of the contract offers certain guarantees in terms of annuity payments after the construction is completed, thereby providing financial security to the contractors involved.

Key details regarding the project include:

• Awarding Entity: National Highways Authority of India (NHAI)
• Nature of Contract: Request for Proposal for the development of the economic corridor
• Execution Timeframe: 910 days, inclusive of monsoon
• Project Cost: Rs. 1,391 crore excluding GST
• Domestic or International: The award is from a domestic entity, NHAI.

Project Relevance and Significance

This project is set to enhance road infrastructure in West Bengal, a state that plays a crucial role in the nation's economic growth. The development of the economic corridor from Bowaichandi to Guskara-Katwa will facilitate better connectivity, supporting the movement of goods and services across the region, thus contributing to the overall economic development of the state.

Regulatory Compliance and Disclosure

This announcement is in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure is also aligned with the SEBI Circular Nos. SEBI/HO/CFD/PoD2/CIR/P/2023/120, dated July 11, 2023, and SEBI/HO/CFD/CFD-PoD1/P/CIR/2023/123, dated July 13, 2023, which provide detailed guidance on the disclosure requirements for listed companies.

The project does not involve any related party transactions, and there are no conflicts of interest, as clarified by the company. This ensures that the project will be executed with full transparency and in line with the arm’s length principle.

Conclusion

The award of this NHAI project is a significant milestone for Ashoka Buildcon Limited. With an impressive project cost of Rs. 1,391 crore, the development of the economic corridor is set to drive the company’s future growth while contributing to the overall improvement of infrastructure in West Bengal. The company’s adherence to SEBI regulations and the adoption of the Hybrid Annuity Mode ensure that this project is both financially viable and impactful. Investors and stakeholders in the infrastructure sector can look forward to the successful completion of this project, which will not only enhance connectivity but also foster regional development.

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