HCC Concessions Ltd, the infrastructure development arm of HCC Infrastructure, is selling its stake in Dhule Palesner Tollway to its joint venture partner Sadbhav Group for Rs2.04 billion (US$32.5 million).
HCC Concessions is also expected to realize an estimated amount of Rs240 million (US$3.8 million) from additional claims to be made to the NHAI towards this project. The deal is subject to necessary approvals and it is expected to close shortly.
The 89 Km road PPP project is part of the NH-3, one of the country's primary north-south commercial corridors, connecting Mumbai to Agra. The National Highways Authority of India (NHAI) awarded the project in 2009 to a consortium composed by HCC Concessions, Sadbhav Group and John Laing. The project started commercial operations in February 2012.
The concession period is 18 years and major construction highlights include 4 bypasses, 3 major bridges, 38 minor bridges, 7 flyovers, 9 underpasses, 1 rail-over-bridge, 65 box culverts, 71 pipe culverts and 2 toll plazas.
The total project investment was Rs14.2 billion (US$226 million).
Arjun Dhawan, president and CEO of HCC Concessions, stated:
"The sale of Dhule furthers our goal of exiting de-risked, operational assets. Dhule has had an exemplary operational record over the past 3 years post its commissioning in 2012, four months ahead of schedule. Our partnership with Sadbhav has been special and we look forward to our next association with them."
Last December, the company had signed definitive documents with Infrastructure Development Finance Company (IDFC) for sale of Nirmal build-operate-transfer (BOT) Ltd, its annuity project in Andhra Pradesh.