New Delhi: HG Infra Engineering Ltd announced on Tuesday, December 10, that it has received a letter of acceptance from the Ministry of Road Transport and Highways (MoRTH) for upgrading the NH-227B Bahuvan Madar Majha to Jagarnathpur stretch, famously known as the 84 Kosi Parikrama Marg, in Uttar Pradesh.

The company, in a regulatory filing, expressed its satisfaction with securing the project. “We are pleased to inform you that HG Infra Engineering Limited has received the letter of acceptance from MoRTH,” the filing stated.

The project will be executed under the hybrid annuity mode (HAM) and includes upgrading a 63.84-kilometre stretch into a two-lane road with paved shoulders. HG Infra Engineering quoted a bid project cost of ₹763.11 crore, while the government’s estimated cost for the project is ₹898.5 crore. The company plans to complete the construction within two years.

The official filing highlighted the scope of the project: “Improvement and upgradation in two lanes with paved shoulders configuration of the newly declared NH-227B Bahuvan Madar Majha to Jagarnathpur (Design Km 160.200 to Km 224.040) ‘84 Kosi Parikrama Marg’ in the state of Uttar Pradesh on Hybrid Annuity Mode Package VI.”

HG Infra Engineering has faced some financial challenges recently. In the second quarter ending September 30, 2024, the company reported a 16% year-on-year decline in net profit, which stood at ₹80.7 crore compared to ₹96.1 crore during the same period last year. Additionally, its revenue from operations dropped by 5.5% to ₹902.4 crore from ₹954.5 crore in the previous fiscal quarter. Operating profit (EBITDA) showed a marginal dip of 0.3%, standing at ₹219.5 crore compared to ₹220.1 crore in the same quarter last year.

Despite the financial slowdown, the award of this significant infrastructure project is expected to boost HG Infra Engineering’s growth and strengthen its presence in Uttar Pradesh’s road development sector.