Ashoka Buildcon subsidiary gets extension in concession period for NHAI Project

10 Oct 2022 , 10:01 AM

Ashoka Buildcon Limited has informed that Ashoka Highways (Durg) Limited (“AHDL”), a subsidiary of Ashoka Concessions Limited, a subsidiary of the Company has received an extension of total 240 days in Concession Period from the end date of Concession period i.e. July 22, 2028 to March 19, 2029, vide NHAI letter.

The extension is received to compensate AHDL for the loss of toll collection, as full and final settlement in respect of all the claims, under the Concession Agreement.

“These disputes did arise between AHDL and National highways Authority of India (“NHAI”) during the execution and operation of the Concession”, the company said. Further, AHDL and NHAI had jointly approached the Conciliation committee of Independent experts for the settlement of claims.

As a settlement under the conciliation, AHDL & NHAI have agreed to settle the claims friendly and according to that it also has executed the settlement Agreement, pursuant to which NHAI granted extension of Concession Period.

At around 10:04 AM, Ashoka Buildcon Ltd is currently trading at Rs79 per share down by Rs0.9 or 1.13% from its previous closing of Rs79.90 per share on the BSE.

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