IRB achieves financial closure for Maharashtra road PPP project
- Canara Bank
- India Infrastructure Finance Company (IIFCL)
- IRB Infrastructure Developers
- Union Bank of India
IRB Infrastructure Developers has achieved financial closure for the four laning of the Solapur-Yedeshi section of National Highway NH-211 in the State of Karnataka, India.
The project has been financed by IDBI Bank (lead institution), India Infrastructure Finance Company Ltd (IIFCL), Canara Bank, Union Bank of India, Corporation Bank and Indian Overseas Bank.
The total project investment is estimated at Rs. 14,920 million (US$246 million). of which viability gap funding from NHAI is R1,890 million, equity contribution by the company will be approx. Rs3,930 million and the remaining will be funded through project finance of Rs9,100 million.
The project involves the development of four laning of the Solapur-Yedeshi section of National Highway NH-211 from km 0.000 to km 100.000 in the state of Maharashtra to be executed as build operation and transfer, BOT (Toll) on design, build, finance, operate and transfer (DBFOT) pattern under the National Highways Development Project (NHDP) Phase IV.
The concession will have a period of 29 years and the construction period is estimated at 910 days.
The Cabinet Committee on Economic Affairs of the Government of India on Sept. 25th, 2013 gave its final approval for the award of the project.
The project will expedite improvement of infrastructure in the State of Maharashtra and also reduce the time and cost of travel for traffic, particularly heavy traffic, plying between Solapur and Yedeshi. Development of this stretch will also help in uplifting the socio-economic condition of this region of the State of Maharashtra. It will also increase employment potential for local labourers for project activities.