Project Execution / Order Book Update
H.G. Infra Removes ₹4,142 Crore MSRDC Projects from Executable Order Book Amid Execution Uncertainty
NSE
hginfra
BSE
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H.G. Infra Engineering Limited has informed exchanges that Maharashtra State Road Development Corporation (MSRDC) returned bank guarantees submitted for two large EPC highway projects without providing any reasons. Due to uncertainty surrounding project execution, the company has decided not to include the projects in its executable order book until further clarity emerges.
PRICE-SENSITIVE TRIGGER
Event: MSRDC returned bank guarantees for two previously awarded EPC highway projects.
Type: Project Execution / Order Book Update
Impact: Negative
Immediate Effect: H.G. Infra has excluded projects worth over ₹4,142 crore from its executable order book, creating uncertainty around future revenue visibility.
Key Metrics:
- Project NC-04 Bid Cost: ₹1,991.11 Crore
- Project NC-05 Bid Cost: ₹2,151.11 Crore
- Combined Project Value: ₹4,142.22 Crore
- NC-04 Project Length: 28.20 KM
- NC-05 Project Length: 31.75 KM
Highlight Metric:
- Projects excluded from executable order book: ₹4,142.22 Crore
What Happened ?
H.G. Infra Engineering Limited provided an update regarding two Maharashtra State Road Development Corporation (MSRDC) highway projects for which the company had earlier emerged as the L1 bidder.
The projects relate to the Nagpur-Chandrapur Access Controlled Super Communication Expressway under EPC mode. The company stated that bank guarantees submitted against bid security were unexpectedly returned by MSRDC without assigning any reason.
Following this, H.G. Infra sought clarification from MSRDC regarding the project status and reasons for returning the guarantees. However, no formal response or communication has been received so far.
Considering the uncertainty around execution, the company has prudently decided not to treat these projects as part of its executable order book until further clarity is available.
Key Details
Project & Execution Details:
- The projects were awarded by Maharashtra State Road Development Corporation (MSRDC).
- Both projects were related to the Nagpur-Chandrapur Super Communication Expressway in Maharashtra.
- Package NC-04 carried a bid value of ₹1,991.11 crore.
- Package NC-05 carried a bid value of ₹2,151.11 crore.
- The projects were to be executed under EPC mode.
- MSRDC returned the submitted bank guarantees without providing any explanation.
- H.G. Infra has not yet received official clarification regarding the future status of the projects.
Note:
- The company clarified that the projects will remain outside the executable order book until execution visibility improves.
Risk Analysis
Key Risks:
- Over ₹4,100 crore worth of projects are currently excluded from executable orders.
- Lack of communication from MSRDC increases uncertainty around project continuation.
- Potential delay or cancellation could affect medium-term revenue growth expectations.
- Investor sentiment may remain cautious until formal clarity emerges.
Worst Case Scenario:
- If the projects are cancelled or reassigned, H.G. Infra could lose a major infrastructure opportunity worth over ₹4,142 crore.
Risk Level: Medium
Company Commentary
- The company stated that bank guarantees submitted against bid security were returned by MSRDC.
- No reasons were communicated by MSRDC while returning the guarantees.
- H.G. Infra has sought clarification regarding the status of the projects.
- The company will continue updating stock exchanges regarding further material developments.
Official Exchange Filing: H.G. Infra Engineering Limited