KNR Constructions Limited , a prominent player in the infrastructure sector, has announced a significant development involving its subsidiary, KNR Ramanatttukara Infra Private Limited (KRIPL). The company has reached a settlement agreement with the National Highways Authority of India (NHAI), marking a resolution to ongoing issues and setting the stage for future project execution.

Key Points of the Settlement

1. Viaduct Construction Agreement

• KRIPL will construct a 377-meter viaduct at its own cost
• Location: Between Km 276.730 to Km 277.140
• Completion deadline: February 28, 2026 (including a 90-day grace period)

2. Project Timeline Extensions

• NHAI has granted an extension of time without damages for the project work
• Provisional completion certificate for the remaining project (excluding the viaduct stretch) expected by July 18, 2025

3. Bidding Restrictions and Penalty Waiver

• KRIPL and its promoters agree not to participate in NHAI bids until November 30, 2025
• In return, NHAI will drop all penalty and debarment proceedings against KRIPL and its promoters

Implications for KNR Constructions

This settlement represents a strategic move for KNR Constructions and its subsidiary. By agreeing to construct the viaduct at its own cost, KRIPL demonstrates its commitment to project completion and maintaining a positive relationship with NHAI. The extension of time without damages provides the company with a buffer to complete the project without incurring additional penalties.

Looking Ahead

While the agreement restricts KRIPL and its promoters from participating in NHAI bids until November 30, 2025, it also clears the way for future collaborations by resolving pending issues. This settlement could potentially strengthen KNR Constructions' position in the infrastructure sector and pave the way for smoother project executions in the future.

Investors and industry observers will likely keep a close watch on the progress of the viaduct construction and the overall project completion, as these factors may influence the company's performance in the coming years.

KNR Constructions Limited, a prominent infrastructure development company, has secured a significant Engineering, Procurement, and Construction (EPC) project in Hyderabad. The company has been awarded a contract worth ₹72.8 crore by the Greater Hyderabad Municipal Corporation (GHMC) for the construction of flyovers at the Kukatpally 'Y' Junction.

Project Details

The project involves the construction of two flyovers:

• A 3-lane flyover on the left-hand side (LHS) towards Ameerpet
• A 3-lane flyover on the right-hand side (RHS) of NH65 towards Miyapur

According to the Letter of Acceptance received by KNR Constructions, the exact contract value is ₹72,80,07,528 (Seventy-Two Crores Eighty Lakhs Seven Thousand Five Hundred and Twenty-Eight Rupees), excluding GST.

Project Timeline

The construction period for this ambitious project has been set at 24 months.

Company's Disclosure

In compliance with Regulation 30 of SEBI (LODR) Regulations, 2015, KNR Constructions promptly informed the stock exchanges about this development. The company's disclosure was signed by Haritha Varanasi, the Company Secretary of KNR Constructions Limited.

Impact on Trading

As part of their commitment to preventing insider trading, KNR Constructions has announced that the trading window for dealing in the company's securities has been closed. This measure ensures fair trading practices and maintains market integrity during this significant period for the company.

About the Project

The flyover project at Kukatpally 'Y' Junction is expected to significantly improve traffic flow in one of Hyderabad's busiest areas. Kukatpally, known for its commercial and residential developments, has been facing increasing traffic congestion. This infrastructure upgrade aims to alleviate these issues and enhance urban mobility in the rapidly growing city.

This contract win underscores KNR Constructions' strong position in the infrastructure sector and its continued trust from municipal authorities for executing critical urban development projects. The successful completion of this project could potentially open doors for more such opportunities in the future, contributing to the company's growth trajectory in the infrastructure space.