Strong parentage

PRA PGOHPL was promoted by Barbrik Project Limited and PRA India Private Limited (rated at Acuité A/Stable/A1). Barbrik Project Limited is the lead sponsor and PRA India Private Limited is the EPC Contractor for PRA PGOHPL. PRA Group is a reputed EPC player in Chattisgarh and has almost four decades of experience in construction of roads and highways. The current order book of Barbrik group as on June 30, 2025 stands at Rs. 2,025.51 Cr, with major contributions from the by-roads (HAM), roads – EPC, coal over burden removal, and hydropower segments. The group has executed similar kinds of road projects in EPC mode. This reduces implementation risk partially. Moreover, the group has strong financial flexibility as reflected from its healthy financial risk profile and adequate liquidity profile. Total project cost is around Rs 783.92 Cr. which is funded through Rs 92.59 Cr. of promoter contribution, Rs 345.5 Cr. of grant from NHAI as per concession agreement and remaining Rs 345.82 Cr. from external borrowing which has been guaranteed by both the sponsors. The company has availed  Rs.298.89 Cr. from the external borrowing till 31st August 2025. Repayment of interest payments are made in a timely manner through Sponsor’ contribution and milestone payments.

Low Revenue Risk

PRA PGOHPL has signed an agreement with NHAI for contractual payment in form of grants and annuities. The project cost is Rs. 732 Cr. (excluding GST). PRA PGOHPL will receive 40 percent of project cost in form of grants during the construction period. The remaining 60 percent of project cost shall be payable in the form of 30 semi-annuities spread over a period of 15 years post achievement of commercial operation date (COD). The project has been split into two segments: 19.708 km and 8.138 km. The 19.708 km stretch was completed as per schedule on June 20, 2025, with the first annuity payment expected after 6 months of COD i.e. December 2025. The remaining 8.138 km has been delinked due to land acquisition issues, with a COD extension for March 2026. NHAI formally approved the delinking on August 11, 2025, and a settlement agreement is expected by end September 2025. The annuity structure will change depending on the settlement agreement of delinking and will remain monitorable. As of August 31, 2025, the overall physical progress stood at 84% of Bid Project Cost. The project has an escalation clause which helps the company to mitigate the material fluctuation risk. The annuities will also include interest on remaining completion cost. The interest will be calculated on average MCLR rate plus 1.25 percent.

Low funding risk

PRA PGOHPL is eligible for mobilization advance from NHAI. The mobilization advance was 5% of the project cost which was paid in eight equal instalments. The mobilization advance had an average MCLR rate plus 1.25 percent. the mobilization advance has been adjusted against the grant from NHAI. The company had taken 8 Bank Guarantees of Rs.47.52 Cr. (Rs.5.92 Cr. each) as mobilization advances. All the bank guarantees have been closed. Pursuant to the settlement agreement due to delinking, any cost escalation that is mutually agreed with NHAI will remain key monitorable. Moreover, the company has tie up with Union Bank of India and Canara Bank for Rs 345.82 Cr. of term loan of which Rs.298.89 Cr. has been disbursed till August 2025.

Susceptibility to risks related to the tender-based nature of operations and competition

SPV remains exposed to inherent cyclicality in the construction industry and volatility in profits . Though industry prospects seem healthy over the medium term with increased central government focus on the infrastructure sector (especially roads and highways), most of the projects are tender-based and players face intense competition and bid aggressively for contracts.