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Welspun Enterprises to acquire BOT toll project from Essel group


Capital Market 

Welspun Enterprises announced its plans to acquire a Build-Operate-Transfer (BOT) Toll project from Essel group's company Mukarba Chowk - Panipat Toll Roads (MCPTRL), subject to NHAI final approval.

This acquisition through a subsidiary (Welspun Infrafacility), is being done by way of Harmonious Substitution which was recommended by the Project Lenders and subsequently approved by NHAI.

As on date, MCPTRL had completed ~31% of the 71.1 km long Mukarba Chowk - Panipat Highway (NH-44) project (the Project).

The original Total Project cost was estimated to be Rs 2,122 crore out of which Rs 1,593 crore is the balance to be incurred, to complete the project. All existing Lenders to the project have agreed to continue supporting the project; thus the project is fully financially tied up. The Company expects to complete the project by June 2021.

As per the Concession Agreement, the scheduled concession end date is October 2033, extendable up to 3.4 years based on actual average traffic in year 2025. The current toll revenue for only Haryana section is about Rs 200 crore per annum. Upon achieving COD for both Haryana and Delhi section, the Company expects to collect toll of Rs 300 crore per annum.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Thu, May 07 2020. 12:03 IST