Large Infrastructure Contract (HAM)
KNR Constructions Wins ₹1,734 Cr NHAI Highway Project in Telangana
NSE
KNRCON
BSE
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KNR Constructions has received a Letter of Award (LOA) from NHAI for a ₹1,734 Cr highway project in Telangana under the Hybrid Annuity Model (HAM).
PRICE-SENSITIVE TRIGGER
Event: LOA Received from NHAI
Type: Capacity Expansion / Operational Milestone
Impact: Positive
Immediate Effect: Significantly strengthens order book and long-term revenue visibility.
Construction Period
730 Days (~2 Years)
O&M Period
15 Years
Order Value
₹1,734 Cr
Project Length
~80.01 km
What Happened ?
KNR Constructions has received a Letter of Award (LOA) from the National Highways Authority of India (NHAI).
Key Aspects:
- 4-laning of NH-167 (Hyderabad–Panaji section)
- Stretch: Gudebellur → Mahabubnagar
- Length: ~80 km
- Execution under Hybrid Annuity Model (HAM)
Adds a major project to KNR’s infrastructure pipeline.
Detailed breakdwon
Awarding Authority
- National Highways Authority of India (NHAI)
Project Scope
- 4-lane highway construction
- Large-scale road infrastructure
Contract Structure
- Hybrid Annuity Model (HAM)
- EPC component
- Long-term annuity income
Timeline
- Construction: 730 days
- O&M: 15 years
Additional Notes
- Domestic project
- Standard infra contract
Management commentary
- Order secured under standard HAM framework
- Strengthens infrastructure execution portfolio
- Continues strong presence in highway projects
Risk Analysis
Key Risks
- Execution delays in large infra projects
- Cost escalation
- Working capital requirements under HAM
Worst Case Scenario
Delays impacting annuity realization and margins
Risk Level: Medium
Reason:
- Large order, but execution + funding risks inherent in HAM model
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