Welspun Enterprises
The highway project will be executed on hybrid annuity mode. Credit: Avik Haldar.

Welspun Sattanathapuram Nagapattinam Road (WSNRPL) has signed an agreement with the National Highways Authority of India (NHAI) for a Rs20.05bn ($285m) highway project in the Indian state of Tamil Nadu.

Welspun Enterprise subsidiary WSNRPL will be responsible for converting the Sattanathapuram to Nagapattinam section of NH-45A (New NH -332) to four lanes under the concession agreement.

NH-45A passes through major towns, including Villupuram, Cuddalore, Bhuvanagiri, and Nagapattinam, with the project road situated in Tamil Nadu and Puducherry.

“WSNRPL will develop the project at a bid project cost of Rs20.04bn ($284.9m) and first year O&M cost of Rs50m ($0.71m).”

The project comes under NHDP Phase-IV and will be executed on hybrid annuity mode (HAM).

Welspun noted that the construction period is two years from the appointed date and WSNRPL has received a firm sanction letter from lenders.

Welspun Enterprise said in a regulatory filing: “WSNRPL will develop the project at a bid project cost of Rs20.04bn ($284.9m) and first year O&M (operation and maintenance) cost of Rs50m ($0.71m).”

The company emerged as the lowest bidder (L1) for an upgrade of the Sattanathapuram-Nagapattinam section of NH-45A in May.

It has developed and operates PPP projects in various sectors and has successfully completed six BOT (Toll) road projects in the highway sector.