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IL&FS Transportation Networks announced that Srinagar Sonmarg Tunnelway, its 49/51 joint venture with Soma Enterprises, has secured a Rs23.63 billion (US$389.4 million) loan from ICICI Bank for the construction, operation and maintenance of Zozila Tunnel PPP project in India.
Financial closure was achieved on 22 August 2014. The total project investment is estimated at Rs32.89 billion (US$542 million).
The road project involves the development of a 6.5-km tunnel and the 6-km approach road along the Srinagar-Sonamarg-Gumri road section on National Highway-1 in Jammu & Kashmir.
The concession period is 20 years including a construction period of 5 years. The project will be developed on a design, build, finance, operate and transfer (DBFOT) basis.
Srinagar Sonmarg Tunnelway, a special purpose vehicle, signed the project contract on 30 April 2014, with Border Roads Organization.
On 5 June 2014 IL&FS Transportation Networks increased its equity stake from 14.5% to 49% in the capital of Srinagar Sonmarg Tunnelway Limited.