KNR Constructions' Subsidiary Completes Major Highway Project in Kerala

KNR Constructions Limited , a prominent player in the infrastructure sector, has announced a significant milestone in its operations. The company's wholly-owned subsidiary, KNR Guruvayur Infra Private Limited, has received a Provisional Certificate of Completion for a major highway project in Kerala, marking a successful execution of the project under the Bharatmala Pariyojana scheme.

Project Details

The project involves the six-laning of National Highway 66 (NH-66, formerly NH-17) from the start of Valanchery bypass to Kappirikkad section in Kerala. This development is part of the broader Bharatmala Pariyojana, a centrally-sponsored and funded road and highways project of the Government of India.

Project Aspect	Details
Project Description	Six-laning from Valanchery bypass to Kappirikkad section of NH-66
Project Cost	Rs 2,140.00 crores
Appointed Date	21st January 2022
Construction Period	1,274 days (including 364 days extension)
Completion Date	17th July 2025
Mode of Execution	Hybrid Annuity Mode

Significance of the Completion

The timely completion of this project demonstrates KNR Constructions' project execution capabilities. The Hybrid Annuity Mode (HAM) under which this project was executed is a mix of engineering, procurement, and construction (EPC) and build-operate-transfer (BOT) formats, aimed at reviving private sector participation in road construction projects.

Company's Disclosure

In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, KNR Constructions Limited has duly informed the stock exchanges about this development. The company's prompt disclosure underscores its commitment to transparency and regulatory compliance.

Impact on Infrastructure Development

The completion of this highway project is expected to significantly improve connectivity and transportation efficiency in Kerala. It aligns with the broader objectives of the Bharatmala Pariyojana, which aims to optimize the efficiency of freight and passenger movement across the country by bridging critical infrastructure gaps.

As infrastructure development continues to be a key focus area for economic growth in India, successful completion of such projects by companies like KNR Constructions plays a crucial role in the nation's progress.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.70%	-1.55%	-5.40%	-19.54%	-34.99%	+49.65%

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.