Welspun Enterprises Ltd. gets appointed date for section of NH-45A in Tamil Nadu.

Welspun Enterprises Ltd. has announced that the National Highways Authority of India ('NHAI') has declared the appointed date for the project "Four Laning of Sattanathapuram to Nagapattinam section NH-45A (New NH-332) in the state of Tamil Nadu under NHDP Phase-IV on Hybrid Annuity Mode ("the Project")" as October 5, 2020.

The competent authority has accorded approval for appointed date with 4 lane road & 4 lane structures as against 4 lane road & 6 lane structures specified in the concession agreement and with current land availability of 29.39 Km (52.71%) as against requirement of 80% without any claim by either party.

The Company was to develop the project at a Bid Project Cost of Rs. 2,005 crore for 6 lane structure and first year O&M cost of Rs. 5 crore. The reduction in Bid Project Cost due to change from 6 lane structures to 4 lane structures is yet not ascertained but is expected to be in range of Rs.100-150 crore with equitable reduction in cost of civil works. The construction of the Project is to be completed within 2 years from the Appointed Date and is to be maintained for 15 years from Commercial Operation Date. It may kindly be noted that the project has already achieved the financial closure and loans are fully disbursable.

Welspun Enterprises has a proven track record of delivering marquee infrastructure projects in India and has Portfolio of 7 projects Hybrid Annuity Model (HAM) worth Rs. 9,800 crore and 1 BOT project worth Rs. 2,122 crore. Two of the HAM assets are already operational and we expect another three HAM assets to be operational by end of FY21.

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