Welspun Enterprises Limited, a key player in India's infrastructure sector, has announced a major milestone in its latest project in Bihar. In a regulatory filing dated 4 June 2025, the company disclosed that its material subsidiary, Welspun Aunta-Simaria Project Private Limited, has received the Provisional Certificate for Commercial Operation (PCOD) from the National Highways Authority of India (NHAI). This certification is a vital step, marking the start of commercial operations of the project effective from 15 May 2025.

The project in focus involves the Four/Six-laning of the Aunta-Simaria (Ganga Bridge with approach road) section of National Highway 31, located in the state of Bihar. Specifically, it covers a stretch from Km 197.900 to 206.050 (Design Chainage) and Km 204.741 to 209.945 (Existing Chainage), measuring a total design length of 8.150 kilometres.

This critical infrastructure development has been undertaken under the Hybrid Annuity Mode (HAM), a funding model used widely for highway development in India, where the government and private company share the project investment risk. In this model, 40% of the project cost is paid by the government during the construction period, and the remaining 60% is paid as annuities over a period, along with interest and operation-maintenance payments.

The Provisional Certificate for Commercial Operation, dated 3 June 2025, was officially made available to Welspun Enterprises at 16:45 hours on the same day, though the effective date of commencement remains 15 May 2025. This certificate essentially indicates that the project has met the minimum requirements for commercial usage, paving the way for revenue generation and triggering the annuity payment cycle under the HAM framework.

This project is significant not just for Welspun but also for infrastructure development in Bihar, especially considering the strategic importance of the Ganga Bridge. The bridge facilitates critical connectivity across the river Ganga, which is a major geographical barrier in the region. The development will greatly enhance traffic movement, logistics efficiency, and regional trade, providing a big boost to the local economy.

Moreover, this project strengthens Welspun Enterprises’ track record in timely delivery of complex highway projects under HAM, reaffirming its credibility in the infrastructure development space. The completion of this project adds to the company’s growing portfolio of successful transport infrastructure works across India.

This disclosure is in line with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates companies to inform stock exchanges about material developments that may affect business operations or financials.

The timely issuance of the PCOD also indicates strong coordination between Welspun and the NHAI, and signals the end of construction and start of monetisation phase. Now that the commercial operations have commenced, Welspun Enterprises is set to receive annuity payments from NHAI as per the terms of the concession agreement.

The official communication also mentions that this information has been uploaded to the company’s website, ensuring transparency and public access to material developments.

This milestone is yet another step in Welspun Enterprises’ continued commitment to contributing towards India’s National Highway infrastructure. With the successful operationalisation of this 8.15-km critical stretch including a major river-crossing structure, Welspun not only strengthens its position in the highway development sector but also contributes to national development goals.

The success of this HAM project showcases the company’s execution capabilities, operational discipline, and ability to deliver on government contracts, especially in challenging geographies like riverine and flood-prone areas such as Bihar.

Investors, stakeholders, and infrastructure analysts will likely interpret this as a positive signal regarding the company’s project execution cycle and future revenue visibility. This development could also influence investor sentiment as Welspun continues to win and deliver more projects under the PPP and HAM frameworks across India.

With this commercial go-live, Welspun Enterprises reaffirms its strategy of value creation through infrastructure asset development, further enhancing its reputation as a reliable EPC and HAM player in the Indian infrastructure ecosystem.

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