GMR achieves financial closure for TN road project

GMR Group Consortium comprising GMR Infrastructure Limited and GMR Energy Limited has achieved the financial closure for the 73 km, Tindivanam ""Ulundurpet Road project in Tamil Nadu.

The capital cost of the project totalling Rs 795 crore has been met through equity and debt. The debt component of Rs 596.25 crore, syndicated by ICICI Bank Limited, has been tied up with 10 bankers -- Andhra Bank, Bank of India, Bank of Baroda, Central Bank of India, Canara Bank, IDBI Ltd, IIFCL, Punjab National Bank, Union Bank of India and ICICI Bank as lead lender.

The equity component is Rs 198.75 crore. The door to door tenure of loan is 16 years against the concession period of 20 years.

The National Highways Authority of India (NHAI) invited bids from the empanelled short-listed road development agencies for the improvement, operations and maintenance of the NH-45 section between Tindivanam and Ulundurpet in Tamil Nadu.

GMR consortium won the bid for strengthening and widening the existing two-lane road to four-lane dual carriageway measuring a total length of 73 km on a BOT (toll) basis for a concession period of two decades. The concession agreement of the project was signed in April 2006.

The group has achieved four financial closures in a row during the present financial year comprising Ambala-Chandigarh road project, Farukhnagar-Jadcherla road project, Adloor Yellareddy "" Pochanpalli road project along with this Tindivanam "" Ulundurpet Road project all within the time stipulated under the concession agreement.

These projects are presently under implementation. The total project cost of these four projects is about Rs 2,347 crore.