IRB Infrastructure Developers Ltd, an Indian highway construction company has won highway project worth Rs 2,100 crore from the National Highways Authority of India (NHAI). The project involves construction of highways in Rajasthan and Gujarat.
"The company has received a letter of award from NHAI for the project of six laning from Udaipur to Rajasthan/Gujarat border i.e. from km 287.4 to 401.2 section of NH 8 in the states of Rajasthan and Gujarat," IRB Infrastructure said in a regulatory filing to the Bombay Stock Exchange.
Following the news, the IRB Infrastructure Developers stock was trading at Rs 261.75 at around 11:20 a.m. on Tuesday, up 2.01 percent from its previous close on the BSE. The scrip opened at Rs 263.80.
The project will be on design, build, finance, operate and transfer (DBFOT) mode under the National Highways Development Project Phase 5. "The estimated project cost of the company is approximately Rs 2, 100 crore," the company said in the statement.
Additionally, the concession period is for 21 years including the construction period of 910 days. Under the terms of concession agreement, the Mumbai-based IRB Infrastructure has offered a premium of Rs 163.80 crore to NHAI.
Earlier this year in March, Union Transport Minister Nitin Gadkari cancelled a contract awarded to IRB Infrastructure to build the Zojila tunnel in Jammu and Kashmir. The project was reportedly worth Rs 10,050 crore (about $1.5 billion).
The road and transport ministry reportedly cancelled the contract without giving any reason. IRB infrastructure had been awarded the Zojila project in January 2015 after it emerged as the sole bidder.