Adani Group’s focus to maintain and execute existing highway projects
ROADS & HIGHWAYS

Adani Group’s focus to maintain and execute existing highway projects

Adani Enterprises will wait till the present volatility around its share price, caused by a report by US- based short seller Hindenburg Research, calms before making further investments in new road projects. The troubled conglomerate would prioritise finishing current initiatives, such as the Ganga Expressway, before making any new capital investments.

With more than Rs 410 billion of projects under management and at least 5000 km of lanes being maintained and built, Adani's road transportation business includes at least eight hybrid annuity mode (HAM) projects, five build-own-transfer (BOT) projects, and one toll-operate-transfer (TOT) project across ten states in the nation. The group had aspirations to become a major force in road transportation.

Adani Road Transport, a wholly owned subsidiary of the ports-to-power infrastructure juggernaut, would also not submit a proposal for the next eleventh and twelfth bundles of the NHAI's TOT projects as part of its new strategy for the highway sector. It has taken part in earlier TOT bids and even won a few of them. The TOT concept was created to promote private investment in the roads industry.

The TOT approach allows the concessionaire to operate and toll the project stretch for the predetermined 30-year concession period by paying a one-time concession charge upfront (lump amount). Highway EPC and BOT (Annuity) projects that have been finished at least two years after the completion date are covered by this model.

Adani Enterprises will wait till the present volatility around its share price, caused by a report by US- based short seller Hindenburg Research, calms before making further investments in new road projects. The troubled conglomerate would prioritise finishing current initiatives, such as the Ganga Expressway, before making any new capital investments. With more than Rs 410 billion of projects under management and at least 5000 km of lanes being maintained and built, Adani's road transportation business includes at least eight hybrid annuity mode (HAM) projects, five build-own-transfer (BOT) projects, and one toll-operate-transfer (TOT) project across ten states in the nation. The group had aspirations to become a major force in road transportation. Adani Road Transport, a wholly owned subsidiary of the ports-to-power infrastructure juggernaut, would also not submit a proposal for the next eleventh and twelfth bundles of the NHAI's TOT projects as part of its new strategy for the highway sector. It has taken part in earlier TOT bids and even won a few of them. The TOT concept was created to promote private investment in the roads industry. The TOT approach allows the concessionaire to operate and toll the project stretch for the predetermined 30-year concession period by paying a one-time concession charge upfront (lump amount). Highway EPC and BOT (Annuity) projects that have been finished at least two years after the completion date are covered by this model.

Next Story
Real Estate

Smartworld Awards Rs 5.32 Billion Contract to Varindera Constructions

Smartworld, one of the fastest growing real estate players in Gurugram, has committed contracts worth approximately Rs 14 billion for its various projects in just six months.For its upcoming iconic project, Smartworld Sky Arc, the company has awarded the construction mandate to Varindera Constructions Limited for Rs 5.32 billion. The project spans 6.9 acre and includes over 900 units in its first phase. Smartworld's total investment in the development of Sky Arc is approximately Rs 17 billion.The company was in the news recently when they awarded Ahluwalia Contracts (India), the mandate for Sm..

Next Story
Infrastructure Urban

Mitsubishi Electric eyes CAPEX investment in India’s CNC market

Mitsubishi Electric is looking to invest in CAPEX in India. Masaya Takeda, General Manager of CNC Systems, noted that the division has tripled its business growth since 2019 and has subsequently made strong investments in India. However, he denied disclosing any details of investment.The machine tools industry in India is growing at an annual rate of 20 per cent, with the CNC market expanding significantly, particularly post-Covid.While automotive manufacturing remains a key growth driver, Takeda expects a steady increase in demand across industries such as general engineering, automotive, and..

Next Story
Real Estate

Essentia Home Opens Second Delhi Store

After the overwhelming success of its flagship store in Gurugram, Essentia Home is set to make a striking debut in New Delhi. Founders Hardesh and Monica Chawla, the creative visionaries behind Essentia Environments, proudly unveil their second store on MG Road in the Delhi Design District. A seamless extension of their 25-year journey in redefining luxury interiors, this new space offers a curated experience of contemporary living infused with a global sensibility – all crafted in India.Spearheading this new chapter is Hridik Chawla, who leads the Essentia Home Experience Center with a comm..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?