Gammon Infrastructure Projects and Simplex Infrastructure (Simplex) have entered into an understanding for taking up 49% equity stake in two of each other's projects. As per the agreement, the company will take up 49% equity stake in Maa Durga Expressways promoted by Simplex for implementing the project for four laning of Mahulia to Bahragora section on NH-33 and Bahragora to Kharagpur on NH-6 in the states of Jharkhand and West Bengal respectively under NHDP phase III on DBFOT (toll) basis.
Simplex will take up 49% equity stake in Vijayawada Gundugolanu Road Project promoted by the company for implementing the project for six laning of Vijayawada - Gundugolanu section of NH-5 in the state of Andhra Pradesh under NHDP phase V on DBFOT (toll) basis.
The National Highways Authority of India, the authority which awarded the project, has approved the equity tie-up for the project. The tie-up will enable the companies to leverage on each other’s strengths in project execution, financial planning, project development and management.
