IRB MP Expressway Private Limited, a Special Purpose Vehicle of IRB Infrastructure Developers Limited, has obtained the financial closure for the Mumbai-Pune Expressway – its first Toll-Operate-Transfer (TOT) project.
The company on Thursday made the payment of the first tranche of Rs 6,500 crore as an upfront sub-concession fee to the Maharashtra State Road Development Corporation (MSRDC). Its chairman and managing director, Virendra D Mhaiskar, said: “Achieving financial closure, amounting to a whopping Rs 6,610 crore debt, for India’s largest Road TOT project in these difficult times was a massive ordeal, especially with more than half the stipulated time being tied away in lockdown. This feat validates lenders’ trust in project’s merits, company’s financial track record and credit worthiness; as also our domain expertise and execution capabilities in developing and managing large highway infrastructure.”
“We are grateful to our lenders for their trust and comfort for financing the project, and to all other stakeholders at all levels, who provided their valuable support and cooperation in these challenging times.”
After having managed the concession for 15 years until August 2019, IRB Infra bagged the concession again in February 2020 for another 10 years and 2 months.
IRB Infra said in a statement that this was India’s single largest concession under the TOT model for tolling and O&M, which commenced from March 1, 2020.
“Total sub-concession fee amounts to Rs 8,262 crore, of which IRB Infra has paid MSRDC the upfront fee of R 6,500 crore. Further staggered payments of R 850 crore in year two, R 850 crore in year three and Rs 62 crore in year four have been tied, and will be made as per the concession guidelines,” the statement added.
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