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MEP Infra jumps after SPV signs concession agreement for road project

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Capital Market
Last Updated : Dec 16 2021 | 9:51 AM IST

MEP Infrastructure Developers jumped 4.86% to Rs 20.50 after the company said its special purpose vehicle (SPV) signed a concession agreement for a road project with the Public Works Department (PWD), Government of Maharashtra.

In October 2021, MEP Infrastructure Developers in association with Ozoneland secured a Letter of Award (LoA) for a road project from PWD, Government of Maharashtra.

The contract is for executing improvements to Solapur Ring Road in Maharashtra under hybrid annuity mode.

Later, a special purpose vehicle (SPV), Ozoneland MEP Solapur Ring Road, was formed by Ozoneland (holding 74%) and MEP Infrastructure Developers (holding 24%) to execute the project.

The SPV signed the concession agreement with PWD, Government of Maharashtra on 15 December 2021 for the said project.

The construction period is 730 days from the appointed date and the concession period is 10 years. The bid project cost is Rs 183.42 crore and first year Operation and Maintenance (O&M) cost is 3.33 crore. The company will receive semi-annual annuity from PWD, Government of Maharashtra post commercial operation date (COD).

On a consolidated basis, MEP Infrastructure Developers reported net loss of Rs 51.63 crore in Q2 September 2021 as against net loss of Rs 65.17 crore in Q2 September 2020. Net sales declined 36.30% to Rs 217.13 crore in Q2 September 2021 over Q2 September 2020.

MEP Infrastructure Developers is an infrastructure company, focusing on serving central and state road authorities, for construction, operation and maintenance of road infrastructure in India.

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First Published: Dec 16 2021 | 9:34 AM IST

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