Madhav Infra Projects Limited has added another major milestone to its portfolio with the receipt of a Letter of Acceptance (LoA) from the National Highways Authority of India (NHAI). The awarded contract is for the four-laning of a 10.079 km stretch of NH-146, spanning from Rahatgarh (Km. 124+470) to Berkhedi (Km. 134+549) in Madhya Pradesh.

This major infrastructure contract, valued at ₹323.82 crore, will be executed under the Hybrid Annuity Mode (HAM) and must be completed within 730 days from the commencement date.

Project Details and Strategic Importance

The project involves comprehensive four-laning works on the important NH-146 corridor. This stretch is critical for regional connectivity, easing transportation between Rahatgarh and Berkhedi and forming part of the broader National Highway Development Plan.

Under the Hybrid Annuity Mode (HAM)—a blend of EPC (Engineering Procurement Construction) and BOT (Build-Operate-Transfer)—the project balances public and private investment, where NHAI pays 40% of the project cost in milestone-linked payments and the remaining 60% is arranged by the contractor.

This model has proven effective for large-scale infrastructure development, particularly in road construction across India.

Project Scope and Execution Timeline

The total project length is 10.079 km, and the accepted bid price is ₹323,82,00,000.

The contract mandates that Madhav Infra Projects complete the project within 730 days (2 years), showcasing the company’s ability to undertake fast-paced, time-bound infrastructure assignments.

Such projects not only boost the company's topline but also contribute significantly to the national goal of expanding and upgrading highway infrastructure across India.

Domestic Contract with No Promoter Involvement

It is important to note that this project is:

• A domestic contract, awarded by the National Highways Authority of India

• Not a related-party transaction

• No promoters or promoter group members of Madhav Infra Projects Limited have any interest in NHAI or the awarding process.

This assures investors and stakeholders of the independent and competitive nature of the award.

Significance of the Project for Madhav Infra Projects Limited

This ₹323.82 crore win reaffirms Madhav Infra’s position as a trusted infrastructure development company, capable of executing complex projects under stringent timelines and financial models like HAM.

The contract will enhance:

• Order book visibility

• Execution credentials in the highway sector

• Long-term cash flow stability, thanks to HAM model's annuity-based returns

By securing such projects, Madhav Infra continues to strengthen its position in India’s growing infrastructure market, especially in state-level highway construction and strategic national connectivity initiatives.

Economic and Regional Development Impact

This highway stretch plays a crucial role in economic development, as it connects smaller towns to major trade routes, thus improving:

• Logistics efficiency

• Travel time reductions

• Regional employment and business opportunities

Once completed, the four-laning is expected to ease congestion, reduce fuel consumption, and contribute to sustainable transportation goals under India’s infrastructure vision.

Hybrid Annuity Model: Why It Matters

The Hybrid Annuity Model is being increasingly adopted for national highway projects due to its risk-sharing mechanism and ability to attract private participation without overburdening contractors with upfront financial requirements.

Under HAM:

• 40% of the project cost is paid by the government during the construction phase

• Remaining 60% is recovered through annuity payments over a concession period

This makes it attractive for contractors like Madhav Infra Projects who benefit from stable annuity income while reducing financial risk during construction.

Company's Broader Outlook and Project Pipeline

Madhav Infra Projects has been strategically building its portfolio across verticals like:

• Roads and Highways

• Water supply projects

• Solar power infrastructure

• Urban development

With this recent win, the company enhances its infrastructure order book, paving the way for future growth in both public and hybrid partnership models.

Investors are likely to see this development as a positive long-term indicator of the company’s execution capabilities and government trust.

What This Means for Stakeholders

For stakeholders, this contract win translates into:

• Revenue visibility for the next two years

• Expansion of Madhav Infra’s footprint in central India

• Strengthened reputation with NHAI and other government bodies

Additionally, no related-party involvement makes the contract fully compliant with corporate governance norms, boosting transparency and investor trust.

The Upcoming IPOs in this week and coming weeks are Aten Papers & Foam.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.