Project Completion
Dilip Buildcon Receives Provisional Completion Certificates for Two Bengaluru–Vijayawada Expressway Packages
NSE
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BSE
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Dilip Buildcon Limited has received Provisional Completion Certificates (PCCs) for two Hybrid Annuity Model (HAM) road projects under the Bharatmala Pariyojana. The certificates cover Bengaluru–Vijayawada Expressway Package-1 and Package-4, enabling commercial operations of both projects.
PRICE-SENSITIVE TRIGGER
Event: Receipt of Provisional Completion Certificates for two Bengaluru–Vijayawada Expressway projects.
Type: Project Completion
Impact: Positive
Immediate Effect: The receipt of provisional completion certificates confirms successful execution of both highway packages and allows the projects to commence commercial operations, strengthening Dilip Buildcon’s project execution record.
Key Metrics:
- Project 1 Cost: ₹599.50 crore
- Project 4 Cost: ₹774.10 crore
- Combined Project Cost: ₹1,373.60 crore
- Execution Mode: Hybrid Annuity Model (HAM)
- Scheduled Completion Period: 730 days from appointed date for both projects
- Commercial Operation Date (Package-1): 2 May 2026
- Commercial Operation Date (Package-4): 4 May 2026
Highlight:
- Dilip Buildcon has secured provisional completion for two HAM highway projects with a combined project cost of approximately ₹1,373.60 crore.
What Happened ?
Dilip Buildcon Limited informed the stock exchanges that it has received Provisional Completion Certificates for Bengaluru–Vijayawada Expressway Package-1 Limited and Bengaluru–Vijayawada Expressway Package-4 Limited.
Both projects form part of the Bharatmala Pariyojana Phase-I under the Hybrid Annuity Model (HAM). The competent authority has declared both highway packages fit for entry into commercial operation with effect from their respective completion dates.
Key Details
Project Completion Details:
- Package-1
- Six-lane access-controlled greenfield highway from Kodur (Ch. 0.000) to Vavolu (Ch. 24.300) on NH-544G in Andhra Pradesh.
- Executed under the Hybrid Annuity Model (HAM).
- Project cost of ₹599.50 crore.
- Appointed date: 5 February 2024.
- Provisional completion date: 2 May 2026.
- Declared fit for commercial operation from 2 May 2026.
- Package-4
- Six-lane access-controlled greenfield highway from Odulapalle (Ch. 72+000) to Nallacheruvu-palli (Ch. 96+300) on NH-544G in Andhra Pradesh.
- Executed under the Hybrid Annuity Model (HAM).
- Project cost of ₹774.10 crore.
- Appointed date: 5 February 2024.
- Provisional completion date: 4 May 2026.
- Declared fit for commercial operation from 4 May 2026.
- Both projects were completed within the scheduled execution period of 730 days from the appointed date.
Note:
- The company also reiterated that the trading window for designated persons remains closed until 48 hours after the declaration of financial results for the quarter ended 30 June 2026, in accordance with its Insider Trading Code.
Risk Analysis
Summary:
- Receipt of the provisional completion certificates substantially reduces execution risk for these projects. Future performance will primarily depend on operational efficiency and contractual obligations under the Hybrid Annuity Model.
Key Risks:
- Final contractual obligations and defect liability requirements remain applicable.
- Operational performance will influence annuity receipts over the project lifecycle.
- Maintenance obligations must be executed as per concession requirements.
- Any regulatory or contractual non-compliance could affect future cash flows.
Worst Case:
- Operational or contractual issues after commercial commencement could delay annuity-related payments or increase maintenance costs.
Risk Level: Low
Company Commentary
- Dilip Buildcon has received Provisional Completion Certificates for both Bengaluru–Vijayawada Expressway Package-1 and Package-4.
- The projects have been declared fit for commercial operations from 2 May 2026 and 4 May 2026, respectively.
- Both projects were executed under the Hybrid Annuity Model (HAM) as part of Bharatmala Pariyojana Phase-I.
- The company has requested stock exchanges to take the disclosure on record under SEBI Listing Regulations.
Official Exchange Filing: Dilip Buildcon Limited
