H.G. Infra Engineering Limited, a leading infrastructure company, has recently been awarded a significant contract by the National Highways Authority of India (NHAI). This contract, valued at Rs 1492.11 crore, is for the development of a six-lane road along the Kaliagura-Baunsaguar section of NH-130 in the state of Odisha. The project is part of the Raipur-Visakhapatnam Economic Corridor, a critical roadway intended to enhance connectivity and support economic growth in the region.

This project will be executed under the Hybrid Annuity Mode (HAM), which is a government initiative for road development in India. Under this model, the contractor, H.G. Infra Engineering, will be paid a portion of the contract value upfront, while the remainder will be paid based on milestones during the construction phase, as well as after the completion and maintenance of the road.

Contract Details and Scope of Work

The scope of the project includes the construction of a six-lane highway along the Kaliagura-Baunsaguar stretch, which is part of the crucial NH-130-CD road. This road will improve the overall connectivity within the region, especially enhancing the Raipur-Visakhapatnam Economic Corridor that connects the cities of Raipur in Chhattisgarh and Visakhapatnam in Andhra Pradesh. The project will facilitate smoother transport of goods and people across these important economic hubs.

Hybrid Annuity Mode and Execution Timeline

The contract will be executed under the Hybrid Annuity Mode (HAM), which is designed to ease financial burdens on contractors while ensuring quality construction. This hybrid model combines the advantages of both Build-Operate-Transfer (BOT) and Annuity-based schemes, which aim to ensure long-term sustainability and faster execution.

The total time allotted for completing the road development project is 730 days (2 years), meaning H.G. Infra Engineering is expected to complete the work within this stipulated period. The two-year timeline reflects the scale of the project and the meticulous planning involved in developing a high-quality, six-lane road.

No Related Party Transactions

It is important to note that the contract awarded to H.G. Infra Engineering by NHAI does not fall within related party transactions, ensuring transparency and fairness in the bidding and award process. Additionally, there is no indication of any interest from the promoter group in the National Highways Authority of India or the contract process, further ensuring that the terms of the contract are conducted at arm's length.

Significance of the Project

The Kaliagura-Baunsaguar section of the NH-130 is an essential part of the larger Raipur-Visakhapatnam Economic Corridor, which is expected to stimulate economic activity by improving transport links across Odisha and nearby regions. This highway will support the movement of goods, as well as provide better connectivity for commuters traveling between these critical hubs.

As a leading infrastructure firm, H.G. Infra Engineering’s role in this project reflects its ability to execute large-scale, complex road construction projects. The company’s expertise in handling such projects positions it as a significant player in India’s road development sector.

Conclusion

The awarding of this Rs 1492.11 crore contract to H.G. Infra Engineering is a major achievement for the company, solidifying its position in the Indian infrastructure and road development market. The six-lane highway project under the Raipur-Visakhapatnam Economic Corridor will bring substantial benefits to the region by enhancing transportation infrastructure. The project’s completion within the 730-day timeline will be crucial for improving connectivity and supporting economic growth in Odisha and surrounding areas.

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