- IRB Infrastructure's SPV achieves financial closure for Rs 2,088-crore highway project on Rajasthan-Gujarat border.
- Project involves six-laning of 113.8 km of NH-8 stretch between Udaipur and Gujarat border.
IRB Infrastructure Developers Ltd. on Wednesday said its special purpose vehicle (SPV), Udaipur Tollways, has achieved financial closure for Rs 2,088-crore highway project on Rajasthan-Gujarat border.
Udaipur Tollway Pvt. Ltd., a special purpose vehicle (SPV), has successfully achieved financial closure for its Rajasthan-Gujarat border six-laning BOT (build, operate, transfer) project, IRB Infrastructure said in a BSE filing.
The SPV, in terms of the concession agreement, executed with the National Highways Authority of India (NHAI) has tied up with the consortium of lenders for project finance to the tune of Rs 1,461 crore.IRB Infrastructure Filing
The project involves six-laning of 113.8 km of National Highway-8 stretch between Udaipur to Gujarat border and the concession period is for 21 years, including 910 days of construction period.
“Now having achieved financial closure on one out of the three NHAI projects awarded last fiscal, the company can bid competitively forupcoming NHAI projects,” Chairman and Managing Director Virendra D Mhaiskar said.
The company said its equity contribution to the Rs 2,088 crore project will be Rs 627 crore while the rest of the amount will be funded by project finance of Rs 1,461 crore.
Project is financed by a consortium of lenders led by Canara Bank Ltd.. The others include Bank of India Ltd., Bank of Maharashtra Ltd., Oriental Bank of Commerce Ltd., Indian Overseas Bank Ltd., Andhra Bank Ltd. and Aditya Birla Finance Ltd.
IRB Infra bagged the project last year by offering a premium of Rs 163.80 crore to NHAI.
The company said the SPV will start construction soon.
Also Read: IRB Infrastructure's Net Profit Grows Most In Six Years On Higher Operating Income
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