Bharat Road Network stock rallies 6.5% despite receiving NHAI notice suspending rights to collect toll fees on a four laning section in Maharashtra

10 Jan 2022 , 01:29 PM

Bharat Road Network Limited (BRNL) subsidiary has received a Notice from the National Highways Authority of India (NHAI) for suspension of the Concessionaire’s right to collect toll fees and other revenues.

The company’s subsidiary  Solapur Tollways Private Limited (STPL) was a concessionaire for four laning of Solapur-Maharashtra/Karnataka border section of NH-9 from km 249.00 to km 348.800 in the State of Maharashtra (Design Length- 100.06 km) on design, build, finance, operate and transfer- DBFOT (Toll) basis.

The suspension is for a six months period and effective from January 07, 2021.

During the said suspension period, NHAI shall act on behalf of the Concessionaire and collect necessary fees and revenue in accordance with the Concession Agreement.

BRNL said that “the Company along with STPL is keeping a close watch on the situation and is taking steps towards necessary legal recourse in the said matter.”

At around 1.24 pm, BRNL stock was trading at Rs33.30 per piece up by 6.6% on Sensex. The stock was near the day’s high of Rs33.65 per piece.