Adani group to foray into highway construction sector.

The Adani group, which has a presence in the power, coal and maritime sectors, would soon foray into the highway construction sector.

According to sources in the know, the Gautam Adani (pictured)-led group is expected to carve out a subsidiary that would undertake the execution of highway contracts on an EPC (engineering-procurement-construction) basis. It may also bid for upcoming national and state highway contracts. An emailed query sent to a company spokesperson for confirmation, however, went unanswered.

Another group company Adani Capital Private on Thursday announced a Rs. 100-crore investment in BSCPL Infrastructure Ltd., a Hyderabad-based EPC and development infrastructure company, focused primarily on the road sector. The funding in BSCPL would be retired out from the proceeds of a BOT (build-operate-transfer) asset sale post completion of the project.

Experts feel the timing of the company to enter the road construction sector is opportune as the infrastructure sector is on a growth path. “If they are planning a foray, it is a great opportunity for them to bid for hybrid-annuity and EPC contracts and even look at picking up equity in some of the highway monetisation projects,” an industry expert who did not wish to be quoted said.

BS