Shares of Hindustan Construction Company (HCC) led by Ajit Gulabchand were locked in a 5% higher circuit at Rs 8.07 after the company informed the exchange that it had settled disputes with the National Highways Authority of India (NHAI). “HCC Concessions, the infrastructure development arm of HCC Group, has entered into conciliation with NHAI for all disputes involving Baharampore-Farakka Highways Ltd (BFHL) and Farakka-Raiganj Highways Ltd (FRHL),” HCC said in a statement. Press. (Follow the Hindustan Construction Company share price here)
“Special Purpose Vehicles (SPVs) have entered into settlement agreements with NHAI for full closure of all outstanding disputes and claims between the parties. BFHL will receive Rs 405 crore while FRHL will receive Rs 854 crore from NHAI”, HCC said.
“Today, HCC has settled the disputes relating to its larger BOT (Build, Operate and Handover) projects, and we are grateful for the opportunity offered by the conciliation mechanism promoted by MoRTH and NHAI. The proceeds of the conciliation will be used to accelerate the completion of our key projects and to strengthen HCC’s participation in future nation-building works, ”said Arjun Dhawan, CEO of HCC Group, in a statement.
BFHL and FRHL are among the largest public-private partnership (PPP) projects in the country. They encompass 200 kilometers of Bengal’s main artery, NH-34, and pass through important cities such as Baharampore, Farakka, Kaliachawk, Malda and Gajol, in addition to being the only link on the Ganges in the region. The NH-34 provides north-south connectivity between the Capital Region and the ports of Kolkata and Haldia to the northeastern states of India.
FRHL was sold to Cube Highways & Infrastructure II Pte Ltd (Cube) on September 22, 2020, at an enterprise value of Rs 1,508 crore.
At 11:35 am, HCC shares were stuck in a 5% higher circuit, outperforming the Sensex which was down almost 1%.