National Highways Authority of India (NHAI) has selected Sadbhav Infrastructure Project for the development of two major highway projects.

To be executed under the Union government’s National Highways Development Project (NHDP) scheme, the projects will take place in the states of Uttar Pradesh and Uttarakhand.

Under the scope of the Uttar Pradesh project, Sadbhav Infrastructure has to complete four-laning work on a 43.45km stretch of the Rampur-Kathgodam section of the NH-87, which is the new NH 9.

"The projects will take place in the states of Uttar Pradesh and Uttarakhand."

The company will also have to undertake the four-laning work of a 49.78km stretch of the Rampur-Kathgodam section of NH-87 in Uttarakhand.

The Rampur-Kathgodam section of NH-87 in Uttarakhand will form the new NH 9109.

Both the projects have been awarded under the NHDP-III on hybrid annuity mode.

The government has decided to fund 40% of the total project cost so that Sadbhav Infrastructure can start the development work.

The remaining amount for the two projects will have to be invested by the company itself.

In a filing with the Bombay Stock Exchange (BSE), the company stated that the NHAI’s cost for the Uttar Pradesh project will reach Rs6.15bn ($92.4m), while the bidder will have to contribute Rs7.38bn ($110.9m).

For Uttarakhand, the NHAI will provide Rs5.71bn ($85.8m), while Sadbhav Infrastructure Project will have to incur a cost of Rs6.57bn ($98.7m).