Ashoka Buildcon Limited has received a Provisional Certificate for its Hybrid Annuity Mode (HAM) project in Karnataka. The project, involving the four-laning of the Tumkur-Shivamogga section, has achieved its Third Commercial Operation Date (CoD) on May 8, 2026, for an 8.29 KM stretch. This milestone brings the total completed length of the project to 50.570 KMs, qualifying the Special Purpose Vehicle for semi-annual annuity payments over a 15-year operational period.
Project Milestone Achieved
Ashoka Buildcon Limited has announced a significant development for its road infrastructure project under the National Highways Authority of India (NHAI). The project, titled ‘Construction of Four Laning of Tumkur – Shivamogga section’ (Package I), has officially reached its Third Commercial Operation Date (CoD) as of May 8, 2026. This milestone covers an additional 8.29 KM stretch, which was confirmed by the Independent Engineer on May 12, 2026.
Consolidated Progress and Scope
The project, which is being executed by the company’s subsidiary, Ashoka Mallasandra Karadi Road Private Limited, has shown consistent progress over the last few years. The total aggregate length for which the Provisional Certificate has been granted now stands at 50.570 KMs. This includes the initial 34.730 KMs completed in 2021 and a subsequent 7.55 KMs completed in 2023.
Financial Impact and Annuity Eligibility
With the successful declaration of the Third CoD, the project has reached a critical financial phase. The Special Purpose Vehicle (SPV) is now eligible to receive annuity payments from the NHAI. These payments are structured to continue over an operational period of 15 years, with disbursements scheduled at 6-month intervals, calculated from the date the project first achieved its original CoD.
Source: BSE
