Welspun Enterprises Limited to take over HAM project in Kerala

Welspun Enterprises Limited has agreed to take over a Hybrid Annuity Mode Project i.e. Six-Laning of Existing Kozhikode Bypass (Vengalam Jn. to Ramanattukara Jn.) of NH-66 in the state of Kerala ("the Project") from Calicut Expressway Private Limited ("existing Concessionaire") through the process of Harmonious Substitution of the National Highways Authority of India ("NHAI"). The proposal of Harmonious Substitution has been submitted by the existing Concessionaire to the lenders of the project and the proposal is subject to NHAI approval. The Appointed Date for the Project has been declared by NHAI. The original Bid Project Cost of the Project, of 28.4 Kms length, is Rs. 1,710 crores. The current estimated Bid Project Cost with price index escalation is over Rs. 1,900 crores, and the first-year Operations and Maintenance is Rs 6.30 crores. The Project is proposed to be undertaken by a wholly-owned subsidiary of the Company.

With this addition, the Company has got 8 HAM projects worth approximately Rs. 11,800 crores out of which 3 projects worth nearly Rs. 3,400 crores have achieved COD/PCOD and others are in advanced stage of implementation. Additionally 1 BOT project of Rs. 2,122 crores is also in advanced stage of implementation.

The company has reached an agreement with Soma Indus Varanasi Aurangabad Tollway Private Limited (SPV), a Special Purpose Vehicle promoted by Indus Concessions India Private Limited and Soma Enterprises Limited, for six-laning of Varanasi Aurangabad NH2 Project. The project length is around 192 km, and is situated in Uttar Pradesh and Bihar.

The contract value for the Company is estimated at Rs. 2,366 crores (inclusive of GST). Under the contract the Company will undertake the procurement and construction, while the Engineering will be undertaken by the SPV.

The project construction is expected to start in April 2021 and likely to be completed in 24 / 27 months subject to the ongoing discussions between SPV and NHAI on descoping to non-availability of land.

This addition once operational shall make the outstanding EPC order book position as Rs. 10,400 crores. This includes EPC work awarded by subsidiary/ joint venture companies and the work being executed during Q4 FY21.

Shares of Welspun Enterprises Ltd was last trading in BSE at Rs.119.85 as compared to the previous close of Rs. 118.45. The total number of shares traded during the day was 46993 in over 925 trades.

The stock hit an intraday high of Rs. 121.5 and intraday low of 116.4. The net turnover during the day was Rs. 5569746.

Source : Equity Bulls

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