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IVRCL Assets lowest bidder for Chandrapur project
IVRCL Assets & Holdings Ltd, a subsidiary of IVRCL Infrastructures and Projects, has emerged as the lowest bidder for an 80-km road project at Chandrapur in Maharashtra.
Updated : Mar 17, 2018, 05:23 AM IST
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IVRCL Assets & Holdings Ltd, a subsidiary of IVRCL Infrastructures and Projects, has emerged as the lowest bidder for an 80-km road project at Chandrapur in Maharashtra. The company is likely to get an official confirmation on the award of the project shortly.
The build, operate and transfer (BOT) project is estimated to have an outlay of `700 crore and offer an internal rate of return of over 22%.
“The Chandrapur project is an industrially active road and we will see significant traffic catering to the mining sector,” S Ramachandran, managing director of IVRCL Assets, told DNA
Money.
The company is currently working on the Sion-Panvel Special State Highway under the BOT mode. The project is a strategic extension of Pune-Mumbai Expressway by another 25 kms up to BARC Junction. The project consists of 10-lane main carriageway in rigid pavement, widening of existing and new major and minor creek bridges, flyovers, vehicular and pedestrian underpasses and footover bridges.
The total project is being taken up with an outlay of `1,500 crore. The state government is providing a grant of about `390 crore while the balance `1,110 crore has to be brought in by the company. “We are looking at a debt-equity ratio of 70:30. The IRR in this project would be between 20% and 22%. This is a busy road connecting Pune and Mumbai and we estimate that about 1.3 lakh cars would take it everyday,” Ramachandran said.
The road project comes to IVRCL with a concession period of 17 years and five months including the construction period. “We have 180 days to achieve the financial closure. But we have the resources in place in terms of relationships with banks to fund the project,” he said.
The project would be completed in about 36 months. “The Mumbai city is growing beyond Sion and the traffic growth on this road too is significant. The IRRs we have calculated are conservative looking at the growth that is happening in the region. We are hopeful of better returns over a period of time,” he said. IVRCL Assets has about eight BOT projects in its fold.
