PNC Infratech Limited has signed a concession agreement with Ministry of Road Transport and Highways (MoRTH) for construction of a 4-lane highway project in Uttar Pradesh. This project will be developed at an estimated cost of Rs. 819 crore under Hybrid Annuity Mode (HAM)*. This information was shared by the company in a stock filing dated 27th June 2023.
Scope of work under this agreement entails construction of a four-lane highway of length 25.545 Km, connecting Singraur Uphar to Baranpur-Kadipur-Ichauli section of NH-731A. This agreement specifies a completion period of 24 months for this project. Further, an operation period of 15 years is also included post-construction of the highway.
*Hybrid Annuity Model (HAM) refers to a mode of Public-Private-Partnership (PPP) wherein the government and the private player share the project expenses in a 40:60 ratio respectively. After the private player develops the project, it is handed over to the government. The government pays a fixed annuity to the private player for a certain amount of time as defined in the contract.