The contract pertains to the operation and collection of user fees at the Kaza Fee Plaza on the Chilakaluripet–Vijayawada stretch of National Highway 16 in Andhra Pradesh. The highway section spans 82.5 kilometres and the project was awarded through a competitive bidding process.

Under the agreement, Highway Infrastructure will also be responsible for the upkeep and maintenance of adjacent toilet blocks at the fee plaza, including the replenishment of consumable items. According to the company’s regulatory filing, the contract tenure is one year.

The company entered into the formal contract agreement on 8 January 2026, following the receipt of the letter of acceptance in December 2025. Operations at the fee plaza are scheduled to be taken over from 23 January 2026.

Highway Infrastructure confirmed that the contract has been awarded by a domestic entity and that neither the company’s promoter nor the promoter group has any interest in the awarding authority. The transaction does not qualify as a related party transaction.

Meanwhile, the company’s shares ended lower on 8 January. Shares of Highway Infrastructure Limited closed at Rs 58.18 on the NSE, down 3.19 per cent.