Order Execution
PNC Infratech Signs Concession Agreements for Two NHAI HAM Projects Worth ₹3,483 Crore
NSE
pncinfra
BSE
539150
- PNC Infratech Limited has executed concession agreements with the National Highways Authority of India (NHAI) for two Hybrid Annuity Mode (HAM) highway projects in Uttar Pradesh through its Special Purpose Vehicles (SPVs).
- The combined bid project cost stands at ₹3,483 crore, with both projects scheduled for construction over 24 months followed by a 15-year operation period.
PRICE-SENSITIVE TRIGGER
Event: Execution of concession agreements for two NHAI Hybrid Annuity Mode (HAM) highway projects.
Type: Order Execution
Impact: Positive
Immediate Effect: The execution of concession agreements enables project implementation through dedicated SPVs, strengthening PNC Infratech’s order book and long-term infrastructure portfolio under the Hybrid Annuity Model.
financials:
Key Metrics:
- Aggregate Bid Project Cost: ₹3,483 crore
- Package-I Project Cost: ₹1,728 crore
- Package-II Project Cost: ₹1,755 crore
Highlight:
- PNC Infratech has secured execution rights for two HAM highway projects with a combined bid project cost of ₹3,483 crore.
What Happened ?
PNC Infratech announced that concession agreements have been signed between the National Highways Authority of India (NHAI) and two Special Purpose Vehicles incorporated by the company for executing two Hybrid Annuity Mode highway projects in Uttar Pradesh.
The agreements were executed on 16 July 2026, allowing the company to begin implementation of both highway packages under the National Highways programme.
key details
Project Details:
- Project Authority: National Highways Authority of India (NHAI)
- Project Model: Hybrid Annuity Mode (HAM)
- State: Uttar Pradesh
- Number of Projects: Two
- Execution Date: 16 July 2026
Package-I:
- Construction of a four-lane highway from Barabanki to Mustafabad on NH-927.
- Implemented through Barabanki Mustafabad Highway Private Limited.
- Bid Project Cost: ₹1,728 crore.
Package-II:
- Construction of a four-lane highway from Mustafabad to Biswariya on NH-927.
- Implemented through Mustafabad Biswariya Highway Private Limited.
- Bid Project Cost: ₹1,755 crore.
Project Timeline:
- Construction period: 24 months from the declaration of the appointed date.
- Operation period: 15 years after project completion under the HAM concession structure.
Note:
- The concession agreements formally authorize the SPVs to execute the two highway projects under NHAI’s Hybrid Annuity framework.
Risk Analysis
Summary:
- Although concession agreements have been executed, project execution remains subject to construction timelines, regulatory approvals, land availability, and operational milestones.
Key Risks:
- Delays in receiving appointed dates could postpone project commencement.
- Construction execution risks may impact timelines.
- Cost inflation during the execution phase could affect project profitability.
- Regulatory or land acquisition challenges may delay progress.
- Long concession tenure requires sustained operational performance.
Worst Case:
- Significant execution delays or cost overruns could affect project profitability, cash flows, and return on invested capital.
Risk Level: Medium
Company Commentary
- PNC Infratech has signed concession agreements with NHAI through dedicated SPVs.
- The projects represent an aggregate bid project cost of ₹3,483 crore.
- Both projects will be executed under the Hybrid Annuity Mode (HAM).
- Construction is scheduled to be completed within 24 months, followed by a 15-year operational period.
Official Exchange Filing: PNC Infratech Limited
