IRB Infra bags Rs1200 crore highway project
22 May 2010
IRB Infrastructure Developers has won the bid for six-laning of the Tumkur-Chitradurga section of national highway NH-4 in Karnataka, the company's chairman and managing director Virendra D Mhaiskar said in Mumbai today.
"It's a Rs1,200-crore project, part of GQ (Golden Quadrilateral). We would be having a 26-year concession on that and we have to six-lane the section between Tumkur to Chitradurga," he said.
According to a filing to the Bombay Stock Exchange, the company has received an official communication from the National Highway Authority of India (NHAI) by way of a Letter of Acceptance (LoA), dated 19 May.
The stock exchange announcement further says that the NHAI has accepted the company's price bid and has declared IRB Infrastructure Developers as the "selected bidder" for the project design, build, finance and operation of six lanning of the approximately 114 km section of the highway.
The project falls under NHDP Phase V on BOT basis. Now, the company is required to form a special purpose vehicle for this project as per provisions of the bid within 30 days of LoA, added the statement.
The premium that is offered to NHAI is Rs140 crore in the first year, Mhaiskar said, adding the debt equity ratio would be 70:30.