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HG Infra Wins Order Worth Rs 763.11 Cr for Highway Project

Jul 25, 2024

By: BlinkX Research Team

On Thursday, July 25, HG Infra Engineering announced that the Road Transport and Highways Ministry has deemed them the lowest bidder for a Rs 765 crore highway project.

Key Takeaways from HG Infra Engineering Order Win

• The Road Transport and Highways Ministry declared HG Infra as the lowest bidder for a Rs 765 crore highway project.
• The highway project is to improve and upgrade the recently declared NH227B Bahuvan Madar Majha to Jagarnathpur in Uttar Pradesh to a two-lane configuration with paved shoulders.
• HG Infra Engineering won the project, 84 Kosi Parikrama Marg, at a bid of Rs 763.11 crore.
• The 63.84-kilometer-long project has been designated under Hybrid Annuity Model (HAM).
• The project is expected to be completed within two years.

In a stock exchange statement, the company stated that the Ministry of Road Transport and Highways (MORTH) had designated it as the L-1 bidder for a project with an overall approved cost of Rs 898.5 crore. 

The highway project is to improve and upgrade the recently declared NH227B Bahuvan Madar Majha to Jagarnathpur in Uttar Pradesh to a two-lane configuration with paved shoulders. 

HG Infra Engineering won the project, 84 Kosi Parikrama Marg, at a bid of Rs 763.11 crore. 

The 63.84-kilometer-long project has been designated under Hybrid Annuity Model (HAM). The project will last two years.

Earlier this month, HG Infra received a letter of award from the Rail Land Development Authority for a Rs 14.65 crore project. The project involves granting a 60-year lease for commercial development on Railway Land at Abu Road Bungalow at Abu Road (NWR) totalling 8034.10 square meters. 

In its first venture into the solar power sector, the company inked a memorandum of understanding with Ultra Vibrant Solar Energy Private Limited this month to acquire solar development projects. 

Ultra Vibrant Solar Energy Private Limited has been granted new solar projects by Jodhpur Vidyut Vitran Nigam Limited (JDVVNL) totalling 83.02 MW (AC), which will be taken over by HG Infra.

About HG Infra Engineering Limited

HG Infra Engineering Limited (HGIEL) is an Indian road infrastructure company that provides engineering, procurement, and construction (EPC) services, as well as maintenance of roads, bridges, flyovers, and other infrastructure contract works.

The company primarily engages in road construction activities through EPC business, with a concentration on Hybrid Annuity Model (HAM) Projects. The company is also pre-qualified to independently bid on large EPC and HAM projects.

The company's customers include government agencies such as the National Highways Authority of India (NHAI) and the Ministry of Road Transport and Highways (MoRTH), as well as private road developers such as IRB Infrastructure Developers Limited, Tata Projects Limited, and Adani Road Transport Limited. The government sector accounts for 92% of the company's order book, with the private sector accounting for 8%.

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