Mumbai, Nov 9 (IEBusiness) Welspun Enterprises Ltd has received the Letter of Award from PWD, Government of Maharashtra for Upgradation of Roads / Two Laning of Roads / Two Laning of Roads with paved shoulder under MRIP Package on Hybrid Annuity Mode (HAM) Package No. AM 2 Under Public Works Circle, Amravati in Maharashtra State.
The Bid Project Cost is Rs 1,460 crore, with the project length being 352.15 km across 9 sub-packages. The construction period is 2 years from the Appointed Date and O&M period is 10 years after Commercial Operation Date.,company said in a filing with BSE.
The Company will receive from PWD 60 percent of the Bid Project Cost during the construction phase, in five equal installments (adjusted for Price Index Multiple) which would be paid upon achievement of physical progress milestones. The balance 40 percent will be serviced through semi annual annuity payments over 10 years. In the O&M phase, the Company will receive semi-annual O&M payments with the first year O&M payment being Rs 31.50 crore.
The Company’s HAM portfolio, now consisting of seven projects, stands at over Rs 8,500 crore. Of these, five projects have achieved Financial Closure, and a firm sanction letter from lenders has been received for the sixth project,filing added.