JV of JMC Projects India Ltd terminate concession agreement with NHAI

M/s. Kurukshetra Expressway Private Limited (KEPL), a Joint Venture Company in which JMC Projects (India) Limited holds 49.57% equity stake. KEPL had entered into a Concession Agreement on 13.07.2010 with National Highways Authority of India (NHAI) for Four Laning of Rohtak-Bawal Section of NH-71 in the State of Haryana on Design, Build, Finance, Operate and Transfer (DBFOT) basis.

KEPL vide its letter dated October 07, 2021 has submitted Notice of Termination of Concession Agreement to NHAI due to forcible suspension of toll collection / user fee on account of the farmer's agitation / protest with effect from December 25, 2020. The event of forceful suspension of toll collection / user fee due to farmer's agitation / protest amounts to Force Majeure Event of Concession Agreement.

The Company will have to provide for an appropriate amount towards impairment in investment which will be worked out in terms of the provision of the Concession Agreement. The amount of impairment is being evaluated and will be announced along with Q2 results.

Shares of JMC Projects (India) Limited was last trading in BSE at Rs. 109.25 as compared to the previous close of Rs. 109.70. The total number of shares traded during the day was 51588 in over 1335 trades.

The stock hit an intraday high of Rs. 112.00 and intraday low of 107.50.The net turnover during the day was Rs. 5666092.00.

Source : Equity Bulls

Keywords

JMCProjectsIndia INE890A01024 JMCPROJECT ConstructionandEngineering Termination ConcessionAgreement NHAI