Highway Infrastructure Limited (HIL) has announced a significant development in its operations, securing a Letter of Acceptance (LOA) from the National Highways Authority of India (NHAI) for a toll operations contract. This latest contract underscores the company's growing presence in India's infrastructure sector.

Contract Details

The contract, valued at approximately Rs. 25.26 crores, involves the operation of user fee collection and maintenance of facilities on a section of the Eight-lane Access Controlled Expressway. Here are the key details of the contract:

Company's Perspective

Mr. Arun Kumar Jain, Managing Director of Highway Infrastructure Limited, expressed enthusiasm about the new contract, stating, "We are pleased to receive LOA by NHAI for tolling and maintenance operations on one of India's key access-controlled expressways. This will further strengthen our position in the toll management segment and reflects our consistent execution track record across national highway projects."

Financial Implications

The addition of this contract bolsters HIL's already robust order book, which now stands at Rs. 778.00 crores. This positions the company favorably for sustained growth and value creation in the infrastructure sector.

About Highway Infrastructure Limited

Highway Infrastructure Limited, incorporated in 2006, is a leading infrastructure development and management company with diversified operations across tollways collection, EPC projects, and real estate. The company operates in 11 states and 1 Union Territory, leveraging advanced technology for efficient toll operations and high-quality project execution.

Market Impact

This contract win is expected to have a positive impact on Highway Infrastructure's market position. It demonstrates the company's ability to secure significant projects in the competitive infrastructure sector and its continued trust from government entities like NHAI.

As India continues to focus on improving its highway network, companies like Highway Infrastructure Limited are poised to play a crucial role in the development and management of these critical infrastructure assets.

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.