Nesco Limited, a renowned player in India’s infrastructure and development sector, has added another feather to its cap. The company was recently declared the highest bidder for a significant project on the Hyderabad-Visakhapatnam Expressway, awarded by the National Highways Logistics Management Limited (NHLML).

The tender includes the development, operation, and maintenance of wayside amenities along the expressway in the Khammam-Devarapalle section. The official allotment letter was received on December 11, 2024.

Key Project Details

The awarded project involves the development of four strategic sites, catering to the growing need for wayside facilities on one of India’s most critical expressways.

Here are the significant terms of the project:

• Scope of Work: Developing, operating, and maintaining wayside amenities.
• Duration:
  • Lease Period: 30 years with a first right of refusal for another 30 years.
  • Development Timeline: Completion within 10 months from the appointed date.
• Cost and Revenue Estimates:
  • Development Cost: Approximately ₹50 crores per site, totaling ₹200 crores.
  • Revenue: Estimated annualized revenue of ₹300 crores from year 4 of operations.
  • Lease Rent: Fixed at ₹4.29 crores annually for all four sites, with an annual revision tied to WPI and CPI indices.

Strategic Importance

The Hyderabad-Visakhapatnam Expressway, part of India’s national highway network, is a vital trade and transport corridor. By securing this contract, Nesco Limited has strengthened its presence in the infrastructure space, showcasing its ability to handle large-scale projects in collaboration with government entities like NHLML (a 100% owned subsidiary of NHAI).

The wayside amenities will provide critical facilities for travelers, including fuel stations, food courts, rest areas, and other convenience services, making the expressway more accessible and traveler-friendly.

Impact on Nesco’s Operations

This project is expected to significantly boost Nesco’s financial and operational performance. With a projected revenue of ₹300 crores annually from year 4, the project aligns well with the company’s strategy to diversify its revenue streams.

Moreover, the fixed lease structure ensures predictable costs, while the revenue potential demonstrates the project’s long-term profitability.

Commentary and Industry Outlook

Experts see this as a major win for Nesco Limited. The company’s strategic shift toward developing infrastructure aligns with the government’s push for robust public-private partnerships in highways and logistics.

Furthermore, the expressway’s importance as a high-traffic corridor ensures strong demand for the amenities, promising high footfall and stable returns for Nesco.

Conclusion

Nesco Limited’s successful bid for this ambitious project reinforces its position as a key player in India’s infrastructure landscape. The company’s entry into wayside amenities development is a testament to its versatility and commitment to driving value for stakeholders.

As the development phase kicks off, all eyes will be on Nesco to deliver on its promise of world-class facilities on the Hyderabad-Visakhapatnam Expressway.