In a significant development in the Indian infrastructure sector, H.G. Infra Engineering Limited (HGIEL) has announced that its wholly owned subsidiary, H.G. Raipur Visakhapatnam OD-5 Private Limited, has received the Provisional Completion Certificate for a major highway project in the state of Odisha. This milestone was officially communicated to the stock exchanges—BSE and NSE—on 29th April, 2025, in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The provisional certificate, issued by the Independent Engineer on 25th April 2025 and received by the company on 28th April 2025, pertains to the Kaliagura-Baunsaguar Section of NH-130CD, a strategic part of the Raipur-Visakhapatnam Economic Corridor. Notably, the section is a six-lane highway project spanning approximately 44 kilometers, executed under the Hybrid Annuity Mode (HAM).

Project Details:

• Name of the Project: Development of Six Lane Kaliagura-Baunsaguar Section of NH-130CD

• Project Stretch: Km 249+000 to Km 293+000 in Odisha

• Project Cost: ₹1,492.11 crore

• Original Scheduled Completion Date: 29 May 2024

• Revised Completion Date: 4 January 2025

• Provisional Completion Date: 4 January 2025

• Time Period for Execution: 730 Days

The company has declared that the project has now been deemed fit for commercial operations starting from 4 January 2025, indicating successful completion in alignment with revised timelines.

This project was awarded by the National Highways Authority of India (NHAI), making it a domestic contract. The execution was undertaken under the HAM (Hybrid Annuity Model), a model that combines EPC (Engineering, Procurement and Construction) and annuity payment mechanisms. This project is part of the broader effort to enhance connectivity between Raipur and Visakhapatnam, which holds economic and strategic importance.

The project will not only improve road infrastructure in Odisha but also contribute significantly to regional trade and economic activity, particularly in eastern India.

Disclosure Obligations:

HGIEL has complied with the relevant disclosure norms by submitting a detailed filing to both BSE and NSE, mentioning all pertinent information such as:

• Name of awarding authority

• Contract nature and value

• Execution mode (HAM)

• Whether any promoter interest or related party transaction is involved (Not Applicable in this case)

Further, in line with the SEBI (Prohibition of Insider Trading) Regulations, 2015, and the company's internal code, it was informed that the trading window for dealing in the securities of HGIEL remains closed for all designated persons and their immediate relatives until 48 hours after the announcement of the audited financial results for the quarter and year ending 31st March 2025.

Impact on the Company and Sector:

This milestone reinforces H.G. Infra’s reputation as a capable and efficient infrastructure player, especially in the road and highway development space. The company has consistently undertaken large-scale projects under HAM and EPC models, contributing to India’s ongoing mission to upgrade its national highway network.

The completion and operational readiness of this project will likely enhance the revenue profile of H.G. Infra and demonstrate its project execution capabilities. Additionally, it signals to stakeholders—investors, government authorities, and partners—that the company is able to meet complex project deliverables even amid logistical and regulatory challenges.

Moreover, the successful delivery of such projects plays a key role in ensuring seamless connectivity, improving logistics, and promoting regional growth. The Raipur-Visakhapatnam Economic Corridor is part of the government’s wider plan to establish multi-modal logistics corridors, and H.G. Infra's execution excellence directly contributes to this vision.

Looking Forward:

With this provisional certificate now in place, H.G. Infra Engineering Limited will soon start receiving annuity payments from NHAI, as is typical under the Hybrid Annuity framework. This development is expected to strengthen the company's cash flow and improve its working capital cycle.

Investors and analysts will now closely watch for the company’s March 2025 quarterly and annual results, which are likely to reflect this operational achievement. It is also expected that further project awards or milestones from the NHAI or other government bodies may follow, depending on performance.

Conclusion:

The receipt of the provisional certificate for the ₹1,492 crore highway project in Odisha marks a crucial milestone for H.G. Infra Engineering Limited and its wholly owned subsidiary. With commercial operations underway and no related party involvement, this development underlines transparency, execution efficiency, and compliance adherence, core traits that define the company’s operational framework.

As India continues to scale up its infrastructure, companies like H.G. Infra are set to play pivotal roles in shaping the future of connectivity and logistics in the country.

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