Highway Infrastructure Limited has made a significant stride in its business operations by securing a lucrative contract from the National Highways Authority of India (NHAI). The company received a Letter of Acceptance (LOA) for operating an eight-lane expressway project in Rajasthan, marking a notable development in the infrastructure sector.

Contract Details

The contract, valued at Rs 252.60 crore, involves the operation of an eight-lane access-controlled expressway spanning from Laban Village in Bundi district to Gopalpura village in Kota district. The project covers a stretch from Km 337.171 to Km 417.810, encompassing approximately 80.6 kilometers of highway.

Scope of Work

The agreement outlines two primary responsibilities for Highway Infrastructure Limited:

1. User fee collection for the expressway
2. Maintenance of adjacent toilet blocks, including the replenishment of consumable items

Key Information

Company Disclosure

Highway Infrastructure Limited has confirmed that this contract does not involve any related party transactions. Additionally, the company stated that neither the promoter nor any promoter group companies have any interest in NHAI, the entity awarding the contract.

Market Impact

This contract represents a significant business opportunity for Highway Infrastructure Limited. The substantial contract value and the strategic location of the expressway project could potentially contribute to the company's revenue stream and operational expertise in highway management.

As infrastructure development continues to be a key focus area for India's economic growth, such projects not only benefit the companies involved but also contribute to the overall improvement of the country's transportation network.

Investors and market watchers will likely keep a close eye on Highway Infrastructure Limited's execution of this contract, as it could impact the company's financial performance and market position in the coming quarters.

Highway Infrastructure Limited (HIL) has recently secured two significant Engineering, Procurement, and Construction (EPC) contracts for e-bus charging infrastructure, marking a notable advancement in the company's involvement with sustainable urban transportation projects.

Nayta Mundla Contract Details

HIL has received a Letter of Acceptance (LOA) from Atal Indore City Transport Services Limited for an EPC service contract valued at Rs 1.96 crore. The scope of work includes:

• Supply, installation, testing, and commissioning (SITC) of external electrification infrastructure for e-bus charging at Nayta Mundla
• Project execution under the PM E-Bus Seva program
• Completion timeline of four months from the contract signing date

The contract terms stipulate a performance security of 3% and an additional performance bank guarantee of 13%, both in the form of Term Deposit Receipts.

Dewas Naka Depot Contract

In a separate announcement, HIL also secured another EPC service contract for the Dewas Naka Depot (Niranjanpur) project. Key details include:

• Contract value: Rs 1.09 crore
• Scope: SITC of external electrification infrastructure for e-bus charging
• Client: Atal Indore City Transport Services Limited
• Execution timeframe: 4 months from contract signing
• Performance security: 3% of service contract
• Additional Performance Bank Guarantee: 14% of the contract

Strategic Implications

These contracts underscore Highway Infrastructure Limited's growing presence in the e-mobility sector, particularly in developing charging infrastructure for electric buses. The projects align with the government's PM E-Bus Seva program, aimed at promoting sustainable public transportation in urban areas.

The back-to-back contract wins demonstrate HIL's competitive edge in securing projects that contribute to the modernization of urban transport systems. As cities across India look to transition towards cleaner public transportation options, companies like Highway Infrastructure Limited are poised to play a crucial role in building the necessary infrastructure.

Financial Impact

The combined value of these two contracts amounts to Rs 3.05 crore, which is expected to positively impact the company's order book and revenue stream in the coming quarters. The relatively short execution period of four months for both projects indicates that the financial benefits could be realized within the current fiscal year.

Highway Infrastructure Limited's involvement in these e-bus charging infrastructure projects not only diversifies its portfolio but also positions the company as a key player in India's growing electric vehicle ecosystem. As the demand for e-bus charging solutions continues to rise, HIL's expertise in this niche area could lead to more such opportunities in the future.