Shares of Ceigall India Ltd soared almost 5% on 25 August after the company received Letters of Acceptance (LoAs) from the Ministry of Road Transport and Highways (MoRTH) for a Rs 704.70 crore highway project in Arunachal Pradesh. 

The project involves construction of the Lada-Sarli section of NH-913, also known as the Frontier Highway, in Arunachal Pradesh. The road will be developed to Intermediate Lane standards and will be executed under the Engineering, Procurement and Construction (EPC) model. The project is expected to strengthen Ceigall India’s presence in the northeastern infrastructure market.

The contract will be executed through a joint venture between Ceigall India and Sushee Infra & Mining Ltd (SIML). Ceigall India will hold a 74% share in the joint venture, while SIML will hold the remaining 26%. Based on the company’s share in the project, Ceigall’s effective portion of the Rs 704.70 crore contract works out to roughly Rs 521.48 crore.

The project carries a 48-month construction period, followed by a five-year maintenance period. This provides Ceigall with a long-term revenue opportunity while adding another major road project to its order pipeline.

The latest win comes shortly after Ceigall India received another Rs 225 crore Letter of Award from Himachal Pradesh State Industrial Development Corporation Ltd for the development of a Bulk Drug Park at Una in Himachal Pradesh. The project includes formation cutting, internal roads, storm-water drains, a bridge and fencing.

The latest order adds to Ceigall India’s exposure to highway construction and infrastructure development, particularly in regions where the government is investing in connectivity. The Frontier Highway project is strategically important because improved road infrastructure in Arunachal Pradesh can strengthen connectivity across the state’s remote areas.

At 10:49 am, the shares of Ceigal India were trading 1.44% higher at Rs 326.80 on NSE. 

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