NESCO Secures ₹225 Crore Bengaluru-Chennai Expressway Project

7 Jan 2025 , 11:35 AM

NESCO Limited, Mumbai-based, has been declared the highest bidder for a key infrastructure project by National Highways Logistics Management Limited, NHLML. The project comprises the development, operation, and maintenance of wayside amenities along the Bengaluru-Chennai Expressway Corridor (Phase II) in the South Zone.

Official confirmation for the allotment of the tender was received by NESCO at 1:16 PM on January 6, 2025. NHLML is a wholly owned Special Purpose Vehicle (SPV) of the National Highways Authority of India (NHAI) under the Ministry of Road Transport and Highways.

The order comprises three locations on the expressway with a lease-based framework for 30 years, which can be expanded for another 30 years. NESCO will complete the development phase within 10 months from the appointed date. The estimated cost to develop this project is ₹75 crores for all three sites ₹225 crore total.

Since year four, operations will garner all locations with ₹350 crore worth of revenue to be collected, annualized revenue. All locations’ total gross annual rent value is ₹ 16.60 crores; rents are reviewed, fixed on each anniversary every calendar year as updated by Wholesale Price Index and CPI.

This project does not involve related party transactions or promoter group interests. The project aims at improving the user experience by providing modern facilities along the expressway. NESCO’s leadership is optimistic about completing the project on schedule, supporting the growth of India’s infrastructure, and delivering long-term stakeholder value.