Ceigall India Executes ₹603 Crore NHAI Agreement, 10.3 Km Punjab Highway Project To Have 15-Year O&M Period
Ceigall India has executed a concession agreement with NHAI for a Rs 603 crore highway project in Punjab. The project involves constructing a 10.3-km six-lane access-controlled spur road under the Hybrid Annuity Model and includes a 15-year operation and maintenance period.
Ceigall India has executed a concession agreement with NHAI for a ₹603 crore highway project in Punjab. |
Mumbai: Ceigall India Limited has announced the execution of a concession agreement with the National Highways Authority of India (NHAI) for a new highway infrastructure project in Punjab. The agreement was signed on June 9 through the company’s special purpose vehicle (SPV), Ceigall Ambala Chandigarh Zirakpur Limited.
The development marks an important step in the implementation of the project and strengthens the company's presence in India's road infrastructure sector.
Rs 603 Crore Highway Project In Punjab
The project involves the construction of a six-lane access-controlled spur connectivity road linking the Ambala-Chandigarh section of NH-205A with the Zirakpur Bypass in Punjab. The total length of the proposed road will be 10.3 kilometres.
According to the company, the estimated project cost is Rs 603 crore, excluding GST. The road is expected to improve connectivity in the region and support smoother traffic movement around key urban and highway corridors.
To Be Developed Under HAM Model
The project will be executed under the Hybrid Annuity Model (HAM), one of the government's preferred formats for highway development. Under this model, both the government and the developer share project funding responsibilities.
HAM projects provide better cash-flow visibility for developers while helping the government accelerate infrastructure creation across the country.
Construction To Finish In 18 Months
Ceigall India said the project carries an 18-month construction period. After completion, the company will also undertake operation and maintenance responsibilities for 15 years.
The long-term maintenance component is expected to provide recurring revenue opportunities while ensuring proper upkeep of the highway infrastructure.
With the execution of the concession agreement now completed, the company can begin project implementation activities and move towards the construction phase of the important Punjab highway corridor.
Disclaimer: This story is based on the company's stock exchange filing and has not been independently verified by FPJ.
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