Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
Rating Rationale
Acuité has assigned its long-term rating of ‘ACUITE BBB-’ (read as ACUITE Triple B Minus) on Rs.350.00 Cr. bank facilities of Sandalpur Project Private Limited (SPPL). The outlook is 'Stable'.
Rationale for rating
The rating factors in the project's limited revenue risk under the HAM framework with a strong counterparty - National Highways Authority of India (NHAI), experienced sponsor support from Anish Infracon India Private Limited, and achievement of financial closure with the entire debt requirement tied up. The rating also considers adequate liquidity, supported by timely milestone payments from NHAI and regular promoter infusion.
However, the rating remains constrained by execution risks associated with the ongoing construction phase and dependence on timely achievement of project milestones and receipt of pending project-related inflows.
About the Company
Incorporated in 2025, Sandalpur Project Private Limited (SPPL) is a special purpose vehicle (SPV) sponsored by Anish Infracon India Private Limited for the implementation, operation and maintenance of the fourlaning of the Sandalpur to Nasrullaganj Bypass End (Package-I) on NH-146B in Madhya Pradesh under the Hybrid Annuity Model (HAM) awarded by the National Highways Authority of India (NHAI). The project has achieved financial closure at a total project cost of Rs.793.73 Cr, to be funded through debt of Rs.349.52 Cr, promoter contribution of Rs.87.38 Cr and NHAI grant support.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered the standalone business and financial risk profile of SPPL to arrive at the rating.
Key Rating Drivers
Strengths
HAM structure with a strong counterparty
SPPL benefits from a stable revenue framework under the Hybrid Annuity Model (HAM) concession awarded by the National Highways Authority of India (NHAI) for four-laning of Sandalpur to Nasrullaganj Bypass End (Package-I) on NH-146B in Madhya Pradesh. Under the HAM structure, the project is insulated from traffic risk as revenues are linked to milestone-based construction payments, semi-annual annuities, interest payments and operation & maintenance (O&M) payments receivable from NHAI.
The concession agreement was executed on May 16, 2025, and the appointed date was declared on January 10, 2026. The concession period extends for 17.5 years, including a construction period of two years. The project enjoys limited receivable risk owing to presence of a strong counterparty - NHAI.
The project will receive grant support equivalent to 40% of the bid project cost along with applicable escalation and GST. Total receipts from NHAI towards grant support are estimated at around Rs.356.83 Cr. over the construction period, supporting project cash flows and reducing funding requirements.
Strong sponsor profile and demonstrated support SPPL is promoted by Anish Infracon India Private Limited (AIIPL), an infrastructure development company with more than three decades of experience in road construction and project execution. AIIPL has executed multiple HAM projects in the past namely – AIIPL Mu Five Project Private Limited, Karmala Road Project Private Limited, Shahpur Road Project Private Limited and few others with successful completion of projects ahead of schedule. The sponsor also has a healthy track record in operating HAM assets and receiving annuity and O&M payments from operational projects.
The rating derives support from the demonstrated commitment of the sponsor towards the project through equity infusion, unsecured funding support and contractual support undertakings. As on March 31, 2026, the company had received promoter contribution of approximately Rs.67.16 Cr, representing around 75% of the total committed promoter support of Rs.87.38 Cr.
Acuité also draws comfort from the corporate support available from AIIPL through shortfall undertaking, corporate guarantee and commitment to fund any shortfall in creation of debt service reserve account (DSRA), if required.
Structured cash flow mechanism The financing structure incorporates an escrow mechanism covering all project cash flows. The escrow waterfall prioritizes statutory dues, project expenses, O&M payments and debt servicing obligations.
Further, DSRA equivalent to six months of debt servicing is required to be maintained in a phased manner. The sponsor has undertaken to fund any shortfall in DSRA creation. Such structural features provide additional protection to lenders during the operational phase.
Weaknesses
Exposure to project implementation risk
As on May 31, 2026, the project achieved physical progress of around 10.49% against EPC cost of Rs.605 Cr. Financial progress stood at 10.49%, while total financial progress including advance loan received from the authority stood at around 25.49%. Therefore, the project remains exposed to implementation risks associated with timely completion of construction, achievement of milestones, contractor performance and availability of project resources.
Any significant delay in project completion beyond the scheduled COD of January 10, 2028, may impact project economics and defer commencement of annuity receipts. However, this risk is mitigated to an extent by the execution track record of AIIPL and the progress achieved so far.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Timely execution of project and achievement of COD/PCOD before January 2028
Timely infusion of funds and receipt of milestone payments
Potential triggers (individual or collective) for a downward rating action:
Any significant delay in the timely infusion of committed funds by the promoters or milestone payment by authority
Delay in project completion (after January 2028) with cost overruns
Liquidity Position
Adequate
SPPL’s liquidity position is adequate, supported by timely receipt of two project milestones as of May 31, 2026, facilitating steady cash flow support for ongoing construction activities. Further, the entire debt requirement for the project has already been tied up.
Liquidity is additionally supported by demonstrated financial support from the promoters through timely equity infusion and unsecured loans. As on March 31, 2026, the company had received approximately 75% (Rs.67.16 Cr) of the total committed promoter contribution of Rs. 87.38 Cr, providing adequate financial flexibility thereby, moderating the funding risk and supporting the timely completion of the project within the envisaged timeline. Further, the repayment obligations of the company will be starting after 6 months post COD.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
36.64
0.00
PAT
Rs. Cr.
2.28
0.00
PAT Margin
(%)
6.23
0.00
Total Debt/Tangible Net Worth
Times
1.16
0.00
PBDIT/Interest
Times
1.60
0.00
Status of non-cooperation with previous CRA (if applicable)
Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)
Sr. No.
Company Name
1
Sandalpur Project Private Limited
2
Anish Infracon India Private Limited
Contacts
List of instruments and names of regulators of the instruments
