H.G. Infra Engineering Ltd today said the Rail Land Development Authority (RLDA) has cancelled its Letter of Acceptance for a commercial development project in Abu Road. The cancellation pertains to a 60-year lease for developing 8034.10 square meters of railway land at Abu Road Bungalow no. 102.
The shares of H.G. Infra Engineering were trading at ₹1,501, up by ₹11.90 or 0.80 per cent on NSE today at 11.45 am.
The company received the initial Letter of Acceptance on July 10, 2024. The original project, valued at ₹14.65 crore, slightly above RLDA’s reserve price of ₹14.41 crore, was to be executed on a Design Build Finance Operate Transfer (DBFOT) basis.
The company had previously informed the stock exchanges about the contract award in July, detailing the project’s scope and financial terms. Today’s announcement marks a significant reversal for H.G. Infra’s commercial development plans in the railway sector.