Site Surrender, Revenue Surge: NESCO’s Bold Moves on Bengaluru-Chennai Expressway

NESCO Limited recently updated the stock exchanges on its ongoing project with National Highways Logistics Management Limited (NHLML) concerning the development, operation, and maintenance of wayside amenities on the Bengaluru-Chennai Expressway Corridor (Phase II) in the South Zone. Initially awarded three sites under lease, NESCO conducted joint site inspections and vendor discussions which revealed significant feasibility and viability challenges at two locations. Consequently, these two sites have been formally surrendered and accepted by NHLML.

 

Following this change, NESCO's commitment has been revised to focus on a single site. The development cost for this remaining site is estimated to be around Rs. 75 crore. Revenue projections are promising, with an estimated annual revenue of approximately Rs. 115 crore expected from the fourth year of operations. The company will pay an annual lease rent of Rs. 5.53 crore for this site, with rent subject to fixed annual increases based on the Wholesale Price Index (WPI) and Consumer Price Index (CPI). Importantly, NHLML has not imposed any financial penalties or implications related to the surrender of the two sites. Other previously disclosed information remains unchanged.

 

Important Points:

Source: Official disclosure by NESCO Limited to stock exchanges.