Infrastructure Project Award

H.G. Infra Engineering Declared Successful Bidder for REC Transmission Project in Jharkhand

NSE

HGINFRA

BSE

541019

H.G. Infra Engineering Limited has been declared the successful bidder by REC Power Development and Consultancy Limited for an inter-state transmission system project under the “WR-ER Inter-Regional Network Expansion Scheme – Part C” in Jharkhand. The project will be executed under the BOOT model with transmission charges of ₹1,145.34 million per year.

PRICE-SENSITIVE TRIGGER

Event: H.G. Infra Engineering declared successful bidder for transmission infrastructure project.

Type: Infrastructure Project Award / Transmission Sector Contract

Impact: Positive

Immediate Effect: The order strengthens H.G. Infra’s infrastructure execution portfolio and expands its presence in the power transmission sector through a long-term BOOT-based project structure.

Key Metrics:

Transmission Charges: ₹1,145.34 million per year
Execution Timeline: 30 months
Project Model: Build, Own, Operate and Transfer (BOOT)
Concession Duration: 35 years
Project Type: Inter-State Transmission System
Project Location: Jharkhand

Highlight:

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What Happened ?

H.G. Infra Engineering Limited informed exchanges that it has been declared the successful bidder by REC Power Development and Consultancy Limited, a wholly owned subsidiary of REC Limited.

The company will establish the Inter-State Transmission System for the “WR-ER Inter-Regional Network Expansion Scheme – Part C” in Jharkhand through tariff-based competitive bidding.

The project will be executed under the Build, Own, Operate and Transfer (BOOT) model and carries annual transmission charges of ₹1,145.34 million.

Key Details

Transmission Project Award Details:

Awarding authority is REC Power Development and Consultancy Limited.
Project pertains to the “WR-ER Inter-Regional Network Expansion Scheme – Part C”.
The project will be developed in Jharkhand.
Contract structure follows the BOOT model.
Concession tenure extends to 35 years.
Execution timeline is 30 months.
The order has been awarded through tariff-based competitive bidding.
Annual transmission charges are fixed at ₹1,145.34 million.
The project is classified as a domestic contract.
The company confirmed no related party involvement.

Risk Analysis

Summary:

Although the project strengthens long-term infrastructure revenue visibility, execution timelines, regulatory approvals, and financing requirements remain key risks.

Key Risks:

Delays in land acquisition or statutory clearances may impact project timelines.
Cost inflation in transmission infrastructure development could affect returns.
Regulatory and tariff-related changes may impact long-term profitability.
Execution delays could increase financing and operational costs.
BOOT projects involve long-duration operational and maintenance commitments.

Worst Case Scenario:

Project execution delays, cost overruns, or adverse regulatory changes could reduce expected returns from the transmission asset over the concession period.

Risk Level: Medium

Company Commentary

H.G. Infra Engineering has been declared successful bidder for the REC transmission project.
The project will establish inter-state transmission infrastructure in Jharkhand.
The contract has been awarded through tariff-based competitive bidding.
The project will be executed under the BOOT framework for a 35-year period.
The company confirmed the transaction is not related-party in nature.

Official Exchange Filing: H.G. Infra Engineering Limited