H.G. Infra Engineering has encountered an unexpected setback as the Maharashtra State Road Development Corporation (MSRDC) returned the bank guarantees related to two major projects. The projects, valued at a combined ₹4,142.22 crore, were part of the Nagpur-Chandrapur Access Controlled Super Communication Expressway.
The first project, Package NC-04, involved the construction of a 28.20 km stretch from Chargaon to Nandgaon Kh in the Chandrapur district, with an estimated project cost of ₹1,554.45 crore and a bid project cost of ₹1,991.11 crore. The second project, Package NC-05, covered a 31.75 km stretch from Nandgaon Kh to Jogapur, also in Chandrapur, with an estimated project cost of ₹1,654.92 crore and a bid project cost of ₹2,151.11 crore.
Despite being declared the L1 bidder for these projects, H.G. Infra Engineering was surprised by the return of the bank guarantees by MSRDC, as no reasons were provided for this action. The company has sought clarification from MSRDC regarding the status of the projects and the rationale behind the return of the guarantees. However, no formal response has been received from MSRDC to date.
In light of these developments and the prevailing uncertainty, H.G. Infra Engineering has prudently decided not to include these projects in its executable order book until further clarity is obtained from MSRDC. The company has assured stakeholders that it will keep the stock exchanges informed of any further material developments in accordance with applicable law.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).