SunCon Clinches RM 508 Million Highway Project In India

SunCon to develop a new road and widening of the existing road to four lanes on a 36.75km highway stretch in the state of Tamil Nadu, India


Sunway Construction Group Berhad (SunCon) announced its acceptance of a Letter of Award (LOA) from the National Highways Authority of India (NHAI) worth RM 508 million (Rs 864.51 crore). The project is awarded to Sunway Construction Sdn Bhd – RNS Infrastructure Limited, a consortium formed by Sunway Construction Sdn Bhd and RNS Infrastructure Limited.

The project consists of developing a new road and widening of the existing road to four lanes on a 36.75km highway stretch in the state of Tamil Nadu, India.

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The project will be operated under the Hybrid Annuity Model (HAM), where NHAI will pay 40% of the project cost during the construction period while the remaining 60% will be paid over a period of 15 years as fixed annuity amount. HAM is an initiative by the Government of India, which was introduced to have a better financial mechanism for road development.

The Letter of Award also includes a 15-year Operations and Maintenance Contract which will bring about an additional RM 4 million (Rs 7.08 Crore) per annum.

“We are very pleased to clinch our first overseas project for the year as this is part of our plan for geographical diversification focused on ASEAN and India,” said Sunway Construction Group Managing Director, Chung Soo Kiong.

The development and widening works of the highway stretches from the Thorapalli Agraharam to the Jittandahalli sections of national highway (NH) 844 and is expected to commence work in October 2020. The construction period for the project is two years.

This project is part of NHAI’s effort to improve the infrastructure and roadworks in India and to widen and to shorten the Hosur-Dharmapuri section of the national highway (NH) 844. Upon completion, motorists can avoid Krishnagiri to reach Hosur or Bengaluru and the new route passing through Rajakottai and Palacode will be shorter by 25km. According to NHAI officials, the project will also boost economic activity in Rayakottai and Palacode.

SunCon’s consortium partner for the project, RNS Infrastructure is an Indian company that provides a wide range of infrastructure construction services such as construction of dams, highways, bridges, tunnels, power houses and residential buildings. SunCon has previously partnered with RNS Infrastructure in June 2001 for its first two infrastructure projects.

Sunway Construction Group Berhad is Malaysia’s largest pure-play construction group, listed on Bursa Malaysia on 28 July 2015. As an award-winning Group, SunCon has built on its expertise and experience for nearly four decades. SunCon provides a full range of design and construction services namely building, civil engineering / infrastructure, foundation and geotechnical engineering, mechanical, electrical and plumbing (MEP) services, renewable energy services and manufacturing and sale of precast concrete products; offering quality end-to-end solutions for its clients as well as timely delivery.