Shares of Reliance Infrastructure have increased 6 per cent in intra-day trade on Tuesday after Anil Ambani-led company said it has received the Letter of Award (LOA) from the Airports Authority of India (AAI) of a contract worth Rs 648 crore in order to construct a new greenfield Airport at Hirasar in Rajkot district of Gujarat.
The company which has branches in power generation, infrastructure, construction and defence, had also participated in the tender for engineering, procurement and construction (EPC) contract independently as a main contractor.
Stocks of the infrastructure company were trading at Rs 130.60, up 4.27 per cent, on the National Stock Exchange. The Scrip touched an intra-day high and low of Rs 133.25 and Rs 124.85, respectively.
Reliance Infra in a filing to the Bombay Stock Exchange said that the scope of work includes detailed designing, engineering, procurement and construction of runway, supply, installation, testing and commissioning of airfield ground lighting system, visual aids for navigation and bird hazard reduction.
Commenting on the development, Reliance Infrastructure E&C CEO Arun Gupta said that their strong credentials in infrastructure projects execution are borne out by the successful execution of large-scale transportation and power projects. He added that the Hirasar airport project will further strengthen Reliance Infrastructure Limited’s bona fide to be a leader in infrastructure projects.
Reliance Infrastructure had scored 92.2 per cent, the highest score among nine qualified bidders like Afcons and L&T. The airport is to be completed within 30 months from the date of issue of letter of award (LoA), the company stated in its exchange filing.
The new airport will be constructed at a location near the National Highway (NH-8B) connecting Ahmedabad and Rajkot, nearly 36 km from the existing Rajkot Airport. It has also said that the proposed new airport will meet the spillover needs of Ahmedabad.
The holistic development of Hirasar airport will not only serve the demand generated by Rajkot city but will also look after the needs of the neighbouring states, the company said.
