Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 22): IJM Corp Bhd has bagged a RM1.5 billion (2,325 crore rupees) contract to develop the Solapur-Bijapur section of the new National Highway 52 between the states of Maharasthra and Karnataka in India.

At RM1.5 billion, the four-lane, 109.08km tollway will be the largest Indian project undertaken by IJM in value.

In a filing with Bursa Malaysia today, IJM said it has accepted the letter of award from the National Highways Authority of India (NHAI) for the project, which will be on a design, build, finance, operate and transfer basis.

"NHAI will provide a grant of about RM235.86 million (367 crore rupees) for the project. The concession is for 20 years, including a construction period of 30 months," it added.

Work is expected to begin in mid-2018 and is scheduled for completion in 2021.

According to IJM, the project will involve the rehabilitation, upgrading and widening of the existing two-lane carriageway to four-lane standards with bypasses and the construction of flyovers, bridges, road intersections, railway overbridge as well as the operation and maintenance of two toll plazas.

Connecting southern India with northern India, the tollway will serve as an alternative route to the North-South Corridor of the National Highways Development Programme.

The development of this highway with bypasses at Solapur, Bijapur, and construction of six flyovers will help reduce time and costs of travel as well as expedite the improvement of infrastructure in Maharashtra and Karnataka.

IJM chief executive officer and managing director Datuk Soam Heng Choon said the group has delivered 16 major road projects totalling 1,378km in India since 1998.

"The project is expected to contribute positively to the future earnings of the group," said the group.

Since March this year, IJM's wholly-owned subsidiary Dewas Bypass Tollway Pte Ltd has been involved in a RM193.8 million project to widen and upgrade 19.8km of the Dewas Bypass bypass road in Madhya Pradesh, India.

IJM's infrastructure division currently operates two tolled highways in India — the 246.8km Rewa Tollway and 68.5km Chilkaluripet-Vijayawada Tollway and owns 30% of Swarna Tollway.

IJM shares closed down 2 sen or 0.65% at RM3.05 today, with 4.45 million shares done, giving it a market capitalisation of RM11.07 billion.

 

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