Welspun Enterprises receives LoA for road upgradation project

The company has received a Letter of award (LoA) for upgrading, two laning of roads with pavement shoulder from PWD department of Maharashtra state.

The project is under MRIP package No. AM 2 on Hybrid Annuity Mode (HAM) in Amravati, Maharashtra. The bid cost is Rs. 1,460 crore, for a length of 352.15 km divided into 9 sub-packages. The tenure of the construction is 2 years from the appointed date and operation and maintenance period is 10 years after commercial launch.

The company will receive 60 per cent of the bid project cost in the construction phase, in installments depending on the progress of milestones. The balance payment will be made through semi annual payments over 10 years. For the O&M service, Welspun will receive semi-annual payments with the first year O&M payment of Rs. 31.50 crore.

Welspun Enterprise now has HAM portfolio of more than Rs 8,500 crore, comprising of seven projects.

Reacting to this order receipt, the stock of Welspun was quoting Rs. 123.75 per share, up by Rs. 3.05 or 2.53 per cent on Friday. While the benchmark index BSE Sensex was at 35,263.80, up by 26.12 points or 0.07 per cent.