GMR Infrastructure slips on NHAI highway project exit

NEW DELHI: GMR Infrastructure Ltd slipped nearly 2 per cent in early trade on Tuesday as the debt-laden infrastructure firm has terminated its contract with National Highways Authority of India ( NHAI) for six-laning of the ambitious Kishangarh - Udaipur -Ahmedabad highway.

At 10:00 am, GMR Infra was trading 1.7 per cent lower at Rs 20.20. It has hit a low of Rs 19.85 and a high of Rs 20.30 in trade today.

“In 2011, GMR Infrastructure bagged NHAI's biggest project, the Rs 7,200-crore Kishangarh-Udaipur-Ahmedabad highway project, by quoting an aggressive premium of Rs 636 crore,” ET reported.

“GMR had reportedly sent a notice for termination of contract to NHAI due to the latter's failure to get an environmental clearance for the project and to notify the revised toll rate on this stretch being widened from four to six lanes,” added the report.

The decision would lead to state-run NHAI losing revenue of Rs 636 crore annually, which would have increased 5% every successive year.

The ET report also suggests that NHAI is believed to be planning to take actions against GMR for non-compliance with the prescribed procedure for exit from a project.