Friday, August 29, 2008

Gammon to construct Rs800 cr Godavari bridge project

Mumbai, Aug 29 : Gammon Infrastructure has bagged a Rs800 crore project from the Andhra Pradesh government for constructing a bridge across river Godavari.

Gammon has received the letter of allotment for constructing, financing and maintaining, on build, operate and transfer (BOT) basis, a major bridge across the river Godavari connecting Rajahmundry and Kovvur.

“The total cost to complete the project has been estimated by the company at Rs800 crore. Gammon would receive a total grant of Rs207.55 crore from the Central and State governments during the construction and operation period of the project,” the company said in a filing to the BSE.

The concession period of the project is 25 years, including a construction period of three years.

Shares of the company reacted positively on the report and surged 17.47% over its previous close.

It witnessed an intra-day high of Rs110.25. The scrip was later trading at Rs105.40, up 12.31 on the BSE in morning trade.

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