Welspun Delhi Meerut Expressway (WDMEPL), a wholly-owned subsidiary company of Welspun Enterprises, has entered into the Concession Agreement with National Highways Authority of India (NHAI) on March 4, 2016 for the purpose of the development of the existing road from km 0.000 to existing km 8.360 (approx. 8.716) on the up to Delhi UP Border section of National Highway No. 24 (the ‘NH 24’) in the state of Delhi by Six Laning Expressway and Four Laning either side of Expressway thereof (the project) on design, build, operate and transfer (the ‘DBOT Annuity’ or ‘Hybrid Annuity’) basis.
Under the Concession Agreement, WDMEPL (Concessionaire) will develop package 1 (of 8.716 km length) of the Delhi - Meerut Expressway at a Bid project Cost will be funded by NHAI, with the balance 60% to be arranged by Concessionaire. During the operation period, NHAI will pay Concessionaire this 60% in semi-annual payments, along with interest thereon. NHAI will also pay the Concessionaire annualized Operations and Maintenance cost of Rs 3.95 crore (adjusted for inflation) for the maintenance of the project road during this period. Construction of the project is to be completed in 2.5 years after appointed date, the project is to be maintained for 15 years after construction, after which it will be transferred to NHAI.
Welspun Enterprises (WEL), formerly Welspun Projects, part of the Welspun Group, is an operating company as well as a holding company in the business of Infrastructure, Oil & Gas Exploration and Renewable Energy. WEL has executed infrastructure projects such as highways, bridges, industrial, residential and commercial buildings.
