MEP Infra under the Joint Bidding Agreement with Longjian was awarded the Project of Construction of 8 (Eight) Laning of existing 4 (Four) Lane VADAPE to THANE from km. 539.202 to km. 563.000 Section of NH-3 (new NH-848) in the State of Maharashtra to be executed on Hybrid Annuity Mode by National Highways Authority of India ("NHAI").
The project was being executed by the SPV: MEP LONGJIAN VTR PRIVATE LIMITED incorporated for the purpose. Under the project, MEP held 51% equity contribution, while Longjian held 49%.
The Concession Agreement (CA) with NHAI was executed on July 4, 2018, and the appointed date declared by NHAI was January 21, 2019.
However, MEP said that due to circumstances beyond the control of the Management, Longjian-the other Consortium Member expressed their inability to infuse their share (49%) in the Equity Contribution.
Thereby, MEP further stated that "in view of the foregoing and on our request as per the terms of CA, NHAI, Lenders and the SPV have entered into an Endorsement Agreement for a Harmonious Substitution for the Project with the Nominated Company- MSRDC Infrastructure Projects Limited."
At around 1.41 PM, MEP is trading at Rs25.85 per piece up by 0.8% on Sensex.