PNS|Hyderabad
IRB Infrastructure Developers Ltd presented a cheque for Rs 7,380 crore to the Hyderabad Metropolitan Development Authority (HMDA) as the upfront payment of the concession fee for the Nehru Outer Ring Road TOT project.
After the payment, the SPV received the appointed date as per the concession agreement.
The SPV has started collecting tolls on the Nehru Outer Ring Road TOT project from Saturday, that is, August 12, 2023.
IRB Infra had emerged as the highest bidder for the project and received the LoA on April 27, 2023. It signed the Concession Agreement with the HMDA on May 26, 2023.
Commenting on the development, Virendra D. Mhaiskar, the Chairman & Managing Director said, “Achieving financial closure well ahead of time for such a large project is a matter of pride for us. We express our sincere gratitude towards the HMDA, the HGCL, the State Bank of India, our partner (GIC, Singapore) and all other stakeholders for their cooperation. We have started collecting toll from 00.00 hours on Saturday.”
“We are committed to achieving excellence and bringing world-class travel experience for the users of this project,” he added.
The project cost is Rs 8,362 crore, the project length is 158 km, and the expressway has eight lanes (1,264 km in total). The ORR has 20 entry and exit points encircling Hyderabad.
The revenue-linked concession period of 30 years is from the appointed date on Toll-Operate-Transfer (TOT) basis. This is IRB’s second TOT project, taking the group’s market share to 37% in India’s TOT space.
The entire project cost of Rs 5,500 crore has been underwritten by the State Bank of India. The project SPV is rated in the AA category. The IRB has infused an equity of Rs 1,460 crore as its 51% share with GIC, Singapore, providing the balance of Rs 1,402 crore for its 49% share totalling Rs 2,862 crore.
