The National Highways Authority of India (NHAI) has agreed to pay GMR Hyderabad Vijayawada Expressways Pvt Ltd (GHVEPL) ₹1,387.21 crore as claim in two tranches. The GHVEPL will hand over the project back to the NHAI on July 1, 2024.
GHEVPL has already received claims of ₹850 crore as the first tranche from the NHAI, which it will majorly utilise towards the closure of loans with its consortium of lenders, GMR Power and Urban Infra said in a stock exchange filing.
It will receive the remaining ₹537.21 crore on the handover date, which will be available with the company for further reduction of GMR Power’s corporate debt and ivnestment growth of its other businesses, it said.
In October 2009, the GHVEPL had executed a concession agreement to construct, operate and maintain a two-lane ₹181.5 km stretch between Hyderabad and Vijayawada on the NH-65. However, GHVEPL said it witnessed significant loss of revenue due to the bifurcation of the stretch between two states — Telangana and Andhra Pradesh — post the date of commissioning of the project. Hence, it raised claims in terms of the agreement, against the NHAI, seeking compensation against the losses that arised due to change in law.
Shares of GMR Power and Urban Infra ended 5% lower at ₹84 apiece on Thursday, June 27. The stock has gained 366.72% in the past year.
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