IRB Infra wins Mumbai-Pune expressway O&M project

IRB Infrastructure Developers Ltd won the contract to operate and maintain Mumbai Pune Expressway and old MumbaI Pune highway four additional years till 2023. The concession period for the project is over eight years and the company will be allowed to collect toll for four years beginning 2019. IRB's previous contract to operate the two roads runs till 2019.

IRB will pay an upfront premium of Rs 1,000 crore to the Maharashtra State Road Development Corporation and carry out capital works including widening of old Pune highway, road over bridges and flyovers worth over Rs 687 crore.

"We are expecting NHAI to issue bids for development of 2,000 kms of roads on a BOT basis and we will participate in them. We will be raising about Rs 5,000 crore debt to fund the Yedeshi-Aurangabad and Kaithal-Rajasthan road projects. We feel our debt-equity ratio is comfortable and will remain under 3:1 on a long term,'' said company chairman Virendra Mhaiskar. He added the company is expecting 4-5 percent in traffic in key projects and expects revenue growth with commencement of tolling on additional road projects.