IRB Infrastructure Developers, one of the leading road and highway builders in the country, is all set to begin work on the first Hybrid Annuity Model project worth Rs 2,043 crore. The highway project in Gujarat is a part of the upcoming Vadodara-Mumbai expressway.
The wholly-owned subsidiary and a Special Purpose Vehicle (SPV) of IRB Infra, VK-1 Expressway Private Ltd received the appointed date from NHAI (National Highways Authority of India) for the 23.740 Km project. Virendra D Mhaiskar-led IRB Infra had won this first of the three HAM projects in March, 2018.
“This is an encouraging development. It means we can commence construction on our first Hybrid Annuity project. Getting appointed date is nothing, but moving a step ahead to meet deadlines with quality construction and ensuring revenue flows as envisaged. We are confident of completing the project in time and ensuring congestion free, safe and comfortable travel experience to the commuters”, said a spokesperson of IRB Infrastructure.
“We are now looking forward to receive Appointed Dates for other two HAM projects in South India, which would enable us to start construction activity on all these projects,” he added.
IRB Infrastructure, led by Virendra D Mhaiskar recently forayed into HAM, after the un-matched success in BOT space. The company also launched the country’s first Infrastructure Investment Trust (InvIT) to manage income-generating infrastructure assets, typically offering investors regular yield and a liquid method of investing in infrastructure projects.
Highlights Of The Project:
- The project is in Gujarat for eight laning of stretch of 23.740 Kms on Vadodara – Mumbai Expressway, with cost of Rs 2043 crore.
- The concession period will comprise of 730 days for construction purpose and 15 years for Operations & Maintenance rights thereafter.
- Construction will be commenced as per the Appointed Date. Project had recently achieved the financial closure, despite the weak lending scenario across the industry for bid cost.
- The SPV of IRB will be receiving financial support of Rs 817 crores from NHAI; equity support of Rs 245 crore from the IRB Infra and Project Financing of Rs 981 crore from the lenders as a part of financial closure.
About IRB Infrastructure Developers Ltd
IRB Infrastructure Developers Ltd, led by Virendra D Mhaiskar is one of the leading private roads and highways infrastructure builder, with presence in BOT and HAM space. The company has a portfolio of 17 owned projects and 7 projects under O&M contracts as a Project manager for IRB InvIT.
Of the 17 owned projects, 7 projects are under operational BOT space; 3 under HAM space; 4 projects under Tolling & Construction. Another 2 projects are under advanced stages of construction and 1 project is under the development stage.
In the last 20 years, IRB Infra has achieved a feat of having a portfolio of 12,800 lane Kms. It also has a share of 20 per cent in India’s prestigious Golden Quadrilateral project; which is the largest by any private highways infrastructure developers in India. It is also India’s first Infrastructure developer company to have the honor of successfully launching and listing India’s first ever InvIT IPO and also transferring 7 projects under the same. Company’s order book as on date stands at Rs 13, 200 crore.
