GMR Hyderabad Vijayawada Expressways (GHVEPL), a subsidiary of GMR Power & Urban Infra has reached a settlement with National Highways Authority of India.
GHVEPL had executed a Concession Agreement (‘Agreement') in October 2009 to construct, operate and maintain a two-lane 181.50 km stretch between Hyderabad and Vijayawada on the NH-65. In view of significant loss of revenue on account of bifurcation of the stretch between two states i.e. Telangana and Andhra Pradesh, post the date of commissioning of the project, GHVEPL had raised claims in terms of the agreement, against NHAI, seeking compensation against such losses, arising due to change in law.
Now, as per the amicably reached settlement, NHAI has agreed to pay an amount of Rs. 1,387.21 crore to GHVEPL as claim in two tranches and project will be handed back to NHAI on 1 July 2024 (Handover Date).
Further, in terms of the settlement, GHVEPL has received claims of Rs. 850 crore as first tranche which will majorly be utilized towards total closure of loans with its consortium of lenders. Balance of the first tranche money and the total second tranche amount of Rs. 537.21 crore to be received on the Handover Date, will be available with the Company for further reduction of GPUIL corporate debt and investment in growth of other businesses of GPUIL.