NESCO Secures Key Contract for Developing Wayside Amenities on Bengaluru-Chennai Expressway

NESCO Limited has been declared the highest bidder by National Highways Logistics Management Limited for developing, operating, and maintaining wayside amenities along the Bengaluru-Chennai Expressway Corridor (Phase II). The company will operate under a 30-year lease agreement, with an option to extend for another 30 years.

Share Price Reaction

Following the announcement, NESCO’s share price surged by over 4% as of 10:20 am on January 7, 2025. 

Contract Details

• Project Scope: Developing and managing 3 sites to provide modern amenities along the expressway.
• Investment: ₹75 crore per site, totalling ₹225 crore.
• Revenue Outlook: Estimated annual revenue of ₹350 crore starting from the 4th year of operations.
• Lease Terms: Annual lease rent of ₹16.60 crore with revisions based on WPI and CPI.
• Development Timeline: Facilities to be operational within 10 months from the appointed date.

Boost to Infrastructure Growth

This contract aligns with India’s focus on improving transport infrastructure and providing convenient facilities for travellers. With its long-term lease structure and focus on modern amenities, NESCO is set to play a pivotal role in enhancing roadside convenience along this key corridor.

Financial Result

A meeting of the Board of Directors of the Company is scheduled to be held on Thursday, January 30, 2025, inter-alia, to consider and approve unaudited financial results for the quarter and nine months ended 31 December 2024. 

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