HG Infrastructure Engineering Ltd. today announced that the Railway Land Development Authority (RLDA) has canceled its Letter of Acceptance for the Abroad commercial development project. The cancellation concerns a 60-year lease for the development of 8,034.10 square meters of railway land at Abu Road Bungalow No. 2. 102.
Shares of HG Infra Engineering were trading at Rs 1,501, up by Rs 11.90 or 0.80 per cent, on the NSE as of 11:45 am today.
The company received its first letter of acceptance on July 10, 2024. The original project was valued at Rs 14.65 billion, slightly above the RLDA’s minimum price of Rs 14.41 billion, and was to be executed on a design-build-finance-operate-transfer (DBFOT) basis.
The company had already notified the stock exchange about the deal in July, detailing the scope and financial terms of the project. Today’s announcement marks a significant reversal of HG Infrastructure’s commercial development plans in the rail sector.
