Sadbhav Engineering starts financial closure for Rs 995-crore project

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Published: December 3, 2019 3:54:49 AM

The company had won a contract from the Karnataka state government for two-laning of two sections stretching 132 km between Gagad and Honnali in Karnataka under the Hybrid Annuity Model (HAM).

Sadbhav Engineering, Sadbhav Gagad Highway, Honnali, Karnataka state government, Hybrid Annuity Model, NHAI, Sadbhav Rudrapur Highway, highway projects, BSEThe company has filed draft documents for the financial closure of Sadbhav Gagad Highway — a wholly-owned subsidiary of Sadbhav Engineering — to Karnataka State Highway Improvement Project.

Sadbhav Engineering has begun the process of achieving financial closure for a Rs 995-crore highway project in Karnataka. The company has filed draft documents for the financial closure of Sadbhav Gagad Highway — a wholly-owned subsidiary of Sadbhav Engineering — to Karnataka State Highway Improvement Project.

The company had won a contract from the Karnataka state government for two-laning of two sections stretching 132 km between Gagad and Honnali in Karnataka under the Hybrid Annuity Model (HAM). Typically, under concession agreements for highway construction and redevelopment with the National Highways Authority of India (NHAI), the concession period begins after a project achieves financial closure.

Following the development, Sadbhav Engineering closed up nearly 2%, at Rs 129.90 on BSE. Last month, ratings agency Crisil had downgraded long-term facilities of two of Sadbhav Group’s highway projects – Sadbhav Bhavnagar Highway and Sadbhav Rudrapur Highway — due to delays in receiving provisional commercial operation date, a key benchmark date against which rating agencies monitor the risk profile of highway projects.

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