National Highways Authority of India (NHAI) and Welspun Enterprises have achieved commercial closure for the Delhi - Meerut road PPP project.

To be more specific, NHAI and Welspun Delhi Meerut Expressway Private Limited (WDMEPL), a wholly­-owned subsidiary of Welspun Enterprises Limited, have entered into the concession agreement on March 4, 2016 for the purpose of the development of the existing road from Km 0.000 to existing km 8.360 up to Delhi UP Border section of National Highway No.24 in the state of Delhi by six laning expressway to four laning either side of the Expressway thereof on design, build, operate and transfer basis.

Under the concession agreement, WDMEPL will develop Package I, 8.716 km length, of the Delhi ­- Meerut Expressway at a bid project cost of Rs8.415 billion (US$124.8 million), and operate it for a period of 15 years.

During construction, 40% of the total project investment will be funded by NHAI, with the balance 60% to be arranged by the concessionaire. During the operation period, NHAI will also pay the concessionaire this 60% in semi­annual payments, along with interest thereon, NHAI will also pay the concessionaire operations and maintenance cost of Rs39.5 million annually (adjusted for inflation) for the maintenance of the project road during this period.

Construction of the project is to be completed in 2.5 years after Appointed Date. The project is to maintained for 15 years after construction, after which it will be transferred to NHAI.