IRB starts work on Rs 4,139-cr road projects

IRB Infrastructure today said it has started work on two road projects in Karnataka and Maharashtra, which entail a cost of Rs 4,139 crore.
The Rs 2,639-crore scheme for four-laning of a highway in Karnataka and the Rs 1,500-crore road widening project in Maharashtra are being implemented by company's wholly-owned subsidiaries, IRB Infrastructure said in a filing to the BSE.
"IRB Westcoast Tollway Pvt Ltd, has now received appointed date from NHAI in terms of the concession agreement for the project of four laning of Goa/Karnataka border to Kundapur section of NH-17 in Karnataka under NHDP phase IV."
The SPV, it said has commenced construction on the project on design, build, finance, operate and transfer (DBFOT) toll basis.

It said it has sought Rs 536 crore from NHAI as viability gap funding for the Rs 2,639-crore project with a concession period of 28 years and construction period of 910 days.
The company has achieved financial closure and tied up project finance of Rs 1,406 crore from a consortium of public sector banks, it added.

"Solapur Yedeshi Tollway Pvt Ltd, the wholly-owned subsidiary of the company, has now executed concession agreement with NHAI for the project of four laning of Solapur to Yedeshi section of NH-211 in Maharashtra under NHDP Phase IV on DBFOT (Toll) basis.
It added that the company has sought Rs 189 crore as viability gap funding from NHAI for the 1,500-crore project with a concession period of 29 years and construction period of 910 Days.

The shares of the company closed at Rs 82.10 apiece, up 0.43 per cent from the previous close on the BSE.