Adani Enterprises gains 2% on winning Ganga Expressway project

With a project cost of Rs 17,085.16 crore, the proposed Greenfield Ganga expressway will be India's longest expressway under PPP framework

Shares of Adani Enterprises (AEL) were up 2 per cent at Rs 1,628.85 on the BSE in Tuesday's intra-day trade after the company announced that it has received the Letter of Award (LoA) from Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) to implement three major stretches of the greenfield Ganga Expressway on a DBFOT (Toll) basis.

At 09:37 am, the stock was up 1 per cent at Rs 1,607.80, as compared to a 0.85 per cent rise in the S&P BSE Sensex. It had hit a record high of Rs 1,788 on November 24, 2021.

"With a project cost of Rs 17,085.16 crore, the proposed Greenfield Ganga expressway will be India's longest expressway under PPP (public–private partnership) framework, which will connect Meerut with Prayagraj in the state of Uttar Pradesh," AEL, the flagship of the Adani Group conglomerate, said in a press release. The construction period for the project shall be 3 years and the concession period shall be 30 years.

With these three awards, Adani's Road Portfolio will have 13 projects with more than 5,000 lane kms and asset value exceeding Rs 35,000 crore spread over 9 states in India i.e. Chhattisgarh, Telangana, Andhra Pradesh, Madhya Pradesh, Kerala, Gujarat, West Bengal, Odisha, and Uttar Pradesh, the company said.

The portfolio will have mix of HAM (Hybrid Annuity Mode), TOT (Toll-Operate-Transfer) and BOT (Build-Operate-Transfer) type assets, it added.

AEL, in its FY21 annual report, said that the Company will leverage its pan-India projects management capability to enhance value for its road, metro & rail infrastructure development business. The Company will seek mergers and acquisitions that enhance access to superior assets that maximise cash flows.

"Around 65,000 km of national highways are to be constructed under the Bharatmala Pariyojana. Under its first phase, the National Highways Authority of India will build 34,800 km of highways by 2022. Awards for the phase-I of Bharatmala are expected to be completed by FY23, while execution is expected to be completed by FY25. NHAI is seeking to mobilise around Rs 265,000 crore in FY22 and FY23 to fund additional road building projects," AEL said in annual report.