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Welspun Enterprises gets appointed date for Sattanathapuram to Nagapattinam section

Tuesday, 06 Oct 2020
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Welspun Enterprises has received appointed date for Sattanathapuram to Nagapattinam section of NH-45A (New NH-332) in Tamil Nadu under NHDP Phase-IV on hybrid annuity mode (HAM). 
 
The National Highways Authority of India (NHAI) has declared the appointed date for the project as 5 October 2020. 
 
The authority has accorded approval for the appointed date with four-lane road & four-lane structures as against four-lane road & six-lane structures specified in the concession agreement and with current land availability of 29.39 km (52.71 percent) as against requirement of 80 percent without any claim by either party. 
 
The company was to develop the project at a bid project cost of Rs 2,005 crore for six-lane structure and first year O&M cost of Rs five crore. 
 
The reduction in bid project cost due to change from six-lane structures to four-lane structures is not yet ascertained, but is expected to be in range of Rs 100 to Rs 150 crore with equitable reduction in cost of civil works. The construction of the project is to be completed within two years from the appointed date and is to be maintained for 15 years from commercial operation date. 
 
The project has already achieved financial closure and loans are fully disbursable. 
 
Welspun Enterprises has portfolio of seven projects on HAM worth Rs 9,800 crore and one BOT project worth Rs 2,122 crore. Moreover, two of the HAM assets are already operational and it expects another three HAM assets to be operational by the end of FY21.
 
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