Under the two-year agreement, Highway Infrastructure will manage user fee collection and operate toll plazas along the expressway. The company will also deploy four patrol-cum-safety vehicles and provide personnel to operate them as part of its responsibilities under the contract.
The contract is valued at Rs. 1.05 bn for the first year, with a 10 per cent escalation for the second year. The total contract value is Rs. 2.21 bn. The order adds to Highway Infrastructure’s portfolio of toll operations contracts across important highway stretches.
In August, the company reported a Rs. 801.7 mn contract from the National Highways Authority of India for toll operations at Palayam Fee Plaza in Tamil Nadu. That agreement covers user fee collection at the plaza on National Highway 44, along the Krishnagiri-Thumbipadi section between Km 94+000 and Km 180+000.
The Palayam Fee Plaza contract was awarded on a Build-Operate-Transfer basis and has a tenure of 90 days. The Krishnagiri-Thumbipadi stretch connects Bengaluru, Hosur and Dharmapuri and supports passenger and freight movement, logistics activity and toll revenue generation. Highway Infrastructure shares ended 0.53 per cent higher at Rs. 43.83 on the NSE on September 16.