HIL has executed an order from the Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) for toll collection and plaza management services on the Gorakhpur Link Expressway. The contract has a tenure of two years and is valued at Rs. 2.21 bn, including Rs. 1.05 bn in the first year.
A 10 per cent escalation will apply to the contract value in the second year. The order gives HIL responsibility for managing tolling operations and related services on the expressway during the contract period, expanding its portfolio of highway management assignments.
The company has also received a letter of acceptance (LoA) from the National Highways Authority of India (NHAI) for operations at the Velanchettiyur Fee Plaza on NH 7 in Tamil Nadu. The contract is valued at Rs. 244.6 mn and adds to HIL’s tolling operations in the southern state.
HIL said the new contracts, together with its existing tolling operations, would help its tolling vertical generate more than Rs. 4 bn in revenue over the next two years. The company said the additions would improve visibility for the business and support its strategy of developing a scalable infrastructure platform focused on highway management services and long-term growth.