Cube Highways and Infrastructure has announced that it has signed an agreement with KNR Constructions Limited and KNR Srirangam Infra Pvt. Ltd. to acquire a new highway project in India. Following the Hybrid Annuity Model (HAM), the project involves the construction and operation of nearly 160 lane-kilometers in the state of Tamil Nadu.

HAM projects are a hybrid between conventional EPC contracts and BOT (Annuity) projects using an innovative concession model developed by the National Highway Authority of India (NHAI). Under the concession, 40% of the project cost will be paid by NHAI during the construction phase with the balance distributed as regular annuity payments on a fixed amortization schedule over a 15-year operational period.

The acquisition represents a new HAM business line within Cube Highways, intended to diversify the company's current portfolio of traffic-linked toll roads through the steady annuity income from HAM projects.

The transaction is contingent upon customary regulatory and lender approvals. The acquisition of equity will be phased in accordance with the terms of the respective concession agreement.