IRB Infrastructure Trust receives Letter of Award from NHAI for TOT13

IRB Infrastructure Trust (the Private InvIT of IRB Infrastructure Developers Ltd.) has received Letter of Award (LoA) from the National Highways Authority of India (NHAI) for TOT-13 comprising Gwalior- Jhansi section on NH-44 and Kota Bypass on NH 76 projects for an upfront consideration of Rs.1,683 Crores, (where the Trust was emerged as a preferred bidder) for the revenue linked Concession of 20 years.

Commenting on the development, Mr. Virendra D. Mhaiskar, Chairman & Managing Director, IRB Infrastructure Developers Ltd., said, Receiving LoA is next important step on way to signing Concession Agreement, which will enable us to proceed to comply with various other formalities, including financial closure for the project that will facilitate timely takeover of the project." He added, "This project will take our share in the North South connectivity to approx. 12%; our aggregate asset base to nearly Rs.77,000 Crs with a robust market share in TOT space to around 38%, the largest by any private transport infrastructure developer in roads and highways segments in India.

The receipt of LoA will now enable the Trust to form Project Special Purpose Vehicle (SPV) for signing Concession Agreement with the Nodal Agency, and subsequently proceed for financial closure within stipulated time frame.

To re-iterate, a month and half ago, IRB Infrastructure Trust had also received LoA from NHAI for TOT-12 (Lalitpur-Lakhnadon section on NH44) for an upfront consideration of Rs.4,428 Crores and Revenue Linked Concession Period of 20 years from the Appointed Date.

Source : Equity Bulls

Keywords

IRBInfrastructureDevelopers IRBInfrastructureTrust LOA NHAI TOT13