Shares of Ashoka Buildcon Ltd were trading 5% higher on 6 June after the company and its subsidiary received a letter of intent (LoI) worth Rs 1,387.2 crore from the Motor Vehicles Department in Maharashtra.
In an exchange filing, the company said, “Ashoka Buildcon informs that the Company and Ashoka Purestudy Technologies Private Limited (APTPL), a subsidiary of the company, had jointly submitted bids for various projects to the Motors Vehicles Department, Maharashtra. This is to inform that company has received Letters of Intent (LOIs) for the Circles including Nagpur; Mumbai; Pune; Marathwada; and Konkan and Western Maharashtra.”
According to the directive, Ashoka Buildcon and its subsidiary have been tasked with a comprehensive, long-term project to improve traffic management infrastructure throughout different districts of Maharashtra.
As part of the contract, they will be in charge of designing, implementing, integrating, operating, and maintaining an Intelligent Traffic Management System (ITMS) across various road lengths in the Nagpur Circle for ten years.
Similarly, the corporations will carry out the same tasks over critical road portions in the Mumbai Circle and the Pune Circle, both for a 10-year period.
In addition to these urban areas, Ashoka Buildcon will design, construct, operate, and maintain ITMS in various blackspots and vulnerable places throughout the Konkan and Western Maharashtra Circles for ten years.
A parallel scope of work will be carried out for blackspots and important sites in the Marathwada Circle, providing improved road safety and traffic regulation over the same 10-year timeframe.
The company stated that the project implementation duration is 15 months from the date of contract signature, and the operation and maintenance period is 10 years from the go-live date.
Ashoka Buildcon Limited, a Fortune 500 firm, is one of India’s leading highway developers, with a major presence in infrastructure and construction.
Since its founding in 1976, the firm has expanded into a diverse and integrated player, engaging in the EPC (Engineering, Procurement, and Construction), BOT (Build, Operate, Transfer), and HAM (Hybrid Annuity Model) segments.
Highways and Bridges, Power (EPC), Railway Projects, Buildings (EPC), City Gas Distribution, and Smart Infrastructure are the company’s key business areas.
Ashoka Buildcon also produces and sells Ready Mix Concrete. With 41 PPP projects finished or in progress, it has developed a significant footprint in more than 20 Indian states, positioning itself as a crucial contributor to India’s infrastructure expansion.
At 11:42 am, the shares of Ashoka Buildcon were trading 1.71% higher at Rs 222.55 on NSE.
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