Highway infrastructure Limited has announced its decision to withdraw the Letter of Acceptance (LOA) issued by the National Highway Authority of India (NHAI) for operating the Venkatapalem Fee Plaza in Andhra Pradesh. The Board of Directors made this decision during their meeting held on March 26, 2026, as disclosed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Penalty Imposed by NHAI

Following the company's withdrawal of the LOA, NHAI has imposed a financial penalty on Highway Infrastructure Limited. The regulatory filing provides specific details about the penalty and its implications.

Financial Impact Assessment

The company has assessed the financial implications of this development and provided transparency regarding its impact on operations. According to the disclosure, the financial impact is limited to the penalty amount of Rs. 26,33,000, with no additional effects on the company's financial, operational, or other activities.

Regulatory Compliance

The announcement follows the company's earlier intimation filed on March 26, 2026, which informed stakeholders about the receipt of the Letter of Acceptance for the Venkatapalem Fee Plaza in Andhra Pradesh. The current disclosure fulfills the requirements under SEBI Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, ensuring complete transparency regarding regulatory orders and penalties.

Project Details

The Venkatapalem Fee Plaza was intended to be operated by Highway Infrastructure Limited in the State of Andhra Pradesh under the LOA issued by NHAI. However, the company's Board decided to withdraw from this opportunity, leading to the current penalty situation. The company has maintained transparency by providing detailed disclosures about the withdrawal and its consequences to both BSE Limited and National Stock Exchange of India Limited.

Highway Infrastructure Limited has announced receiving a significant contract from the National Highways Authority of India (NHAI) for fee plaza operations in Andhra Pradesh. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Contract Details and Scope

The Letter of Acceptance (LOA) carries a value of Rs 35,43,99,930, representing a substantial addition to the company's order book. The contract encompasses operations at Venkatapalem User Fee plaza, strategically positioned at kilometer 35+400 along the Vijayawada Bypass corridor.

Project Specifications

The engagement involves user fee agency services through e-tender for the Venkatapalem User Fee plaza. This plaza serves the 6-laning project of Vijayawada Bypass, spanning from Gollapudi (Km 30+000) to Chinnakakani (Km 47+881). The project includes a major bridge construction across the Krishna river in the Vijayawada Gundagolanu section of National Highway-16.

Additionally, the contract encompasses upkeep and maintenance responsibilities for adjacent toilet blocks, including recouping consumable items. This comprehensive scope demonstrates the integrated nature of highway infrastructure services required for modern toll plaza operations.

Regulatory Compliance and Transparency

The company has confirmed that this contract does not constitute a related party transaction and has been awarded at arm's length. No promoter or promoter group companies have any interest in NHAI, the entity awarding the contract. This ensures complete transparency and adherence to corporate governance standards.

Strategic Significance

The 90-day execution timeline indicates an immediate revenue opportunity for Highway Infrastructure Limited. The contract represents the company's continued engagement with NHAI, India's premier highway development authority, strengthening its position in the toll plaza operations segment.

This development aligns with the ongoing infrastructure expansion in Andhra Pradesh, particularly along the critical NH-16 corridor that connects major commercial centers. The Vijayawada Bypass project, being a significant infrastructure initiative, positions the company strategically within India's expanding highway network.