Nesco Bags Project From NHAI Unit With Estimated Revenue Potential Of Rs 350 Crore
The development of amenities at each of the sites will cost about Rs 75 crore, aggregating to about Rs 225 crore in total.
Nesco Ltd. has emerged as the highest bidder for a project in the south zone on the Bengaluru–Chennai Expressway Corridor (Phase II) section, according to an exchange filing.
The contract by the National Highways Logistics Management Ltd. entails developing, operating and maintaining wayside amenities on the expressway on a lease basis across three sites. Nesco received the official correspondence about the allotment of the tender by the National Highways Authority of India subsidiary on Monday, it said.
The development of the project is to be completed within 10 months from the appointed date and the period of lease spans 30 years. The contract also comes with the option for first right of refusal for extending the lease agreement for another 30 years, according to the filing.
The development of amenities at each of the sites will cost about Rs 75 crore, aggregating to about Rs 225 crore in total, Nesco said.
Following the development of the project, Nesco estimates that from the fourth year of operations, it will earn about Rs 350 crore in annualised revenue from all three sites combined.
The annual lease rent for the three sites will be Rs 16.6 crore, which will have an option to be increased annually on the basis of rise in Wholesale Price Index and Consumer Price Index, it added.
In another filing, Nesco said the trading window for dealing in its shares, which has closed from Jan. 1, would continue to remain closed for directors, designated persons, insiders and their immediate relatives till the expiry of 48 hours from the date the financial results are made public.
Last year, in December, the company had won another National Highways Logistics Management contract. It involved development, operations, and maintenance of wayside amenities on the Hyderabad Visakhapatnam Expressway in the Khammam Devarapalle section.
Shares of Nesco closed 0.01% higher at Rs 995.25 apiece on the BSE, compared to a 1.59% decline in the benchmark Sensex.
