IRB bags Rs. 1200cr Punjab project

Close on the heels of securing Karnataka-Goa-Panaji highway project early last week, the IRB Infrastructure Developers has yet again bagged 102 kms long four lanes stretch on the Pathankot-Amritsar NH-15 highway project on design-build-finance-operate-transfer model involving an estimated investment of Rs. 1200 crore.

The Chairman and the Managing Director, V D Mhaiskar said that the project which has been awarded for a concession period of 20 years with 910 days construction time, is a part of the National Highway Development Program (NHDP) in which the company has sought a grant of Rs. 126.90 crore as a viability gap fund from the NHAI. The IRB is in a position to infuse Rs. 400 crore equity for the Punjab project over a period of four years through internal accruals. The concession agreements would have to be signed first and then the financial closure will take about six months prior to the contractual period.

He said adding that the company has decided to raise a debt of Rs. 700 crore and Rs. 400 crore for the Goa and Punjab projects respectively and he pointed out that borrowing is not an issue at all as the lending interest rates are currently in the range of 12 per cent. Unlike four lanes to six lane conversion projects, two to four lane conversion work do not permit levy of toll from commencement of the project and in such cases the toll collection is possible only after the completion of the project, he said.