1 hour ago
Highway Infrastructure Ltd on Friday (October 23) said it has received a Letter of Acceptance (LOA) worth ₹340.08 crore from the Highways Authority of India (NHAI) for operating the Palayam fee plaza in Tamil Nadu. The contract has a tenure of one year.
The contract involves engaging a user fee collection agency through competitive e-tendering for Palayam Fee Plaza of Highway 44 (NH-44), on the Krishnagiri-to-Thirumangalam section, on a build-operate-transfer (BOT) basis.
The scope of work also includes the upkeep and maintenance of adjacent toilet blocks, including replenishment of consumable items. The LOA was issued by NHAI on October 23, 2026.
ALSO READ | Highway Infrastructure shares surge 7% after company bags ₹155 crore contract from NHAI
Highway Infrastructure said the contract was awarded by a domestic entity. The company's promoter and promoter group companies have no interest in the entity awarding the contract, and the contract does not fall under related-party transactions.
Last month, Highway Infrastructure said it entered into a contract agreement worth ₹220.66 crore with the Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) for collection of user fees and operation of toll plazas on the Gorakhpur Link Expressway.
The contract agreement was signed on September 30, following the Letter of Acceptance (LOA) received by the company on September 16 for the project. The contract covers a two-year period and also includes the deployment of four patrol-cum-safety vehicles with the required personnel for the expressway.
ALSO READ | Highway Infra bags over ₹220 crore order for Gorakhpur Link Expressway
"This is with reference to our earlier intimation dated 16th September 2026, regarding the receipt of the LOA for "Collection of User Fees and Operation of Toll Plazas along with deployment of 04 number of Patrol-cum-safety vehicles with required personnel manning these vehicles for Gorakhpur Link Expressway".
We wish to further inform you that the Company has entered into a Contract Agreement on 30th September 2026 for the execution of the above-mentioned operation of Toll Plaza," according to a stock exchange filing.
Under the contract, the first-year consideration is ₹105.08 crore, with a 10% annual escalation for the second year. The total contract value is ₹220.66 crore. The work order involves collection of user fees and operation of toll plazas along the Gorakhpur Link Expressway, along with deployment of the four patrol-cum-safety vehicles.
ALSO READ | Highway Infrastructure wins ₹155-crore NHAI order for Gujarat fee plaza projects
Uttar Pradesh Expressways Industrial Development Authority is the entity awarding the contract. The company said the contract has been awarded by a domestic entity and is to be executed over two years.
Shares of Highway Infrastructure Ltd ended at ₹54.43, up by ₹0.28, or 0.52%, on the BSE.
