IVRCL freezes funds for Sion-Panvel highway

Infrastructure major IVRCL has achieved financial closure for the project to improve Sion-Panvel special state highway.

The project, being taken up with an outlay of Rs1,705.67 crore, would be funded through a senior debt of Rs1,299 crore while the balance would come in through a combination of equity and internal accruals.

According to a company statement, the financial commitment has been given by nine banks and IIFCL. The highway extends from BARC junction to Kalamboli junction.

New Panvel is strategically located on the eastern side of the Mumbai-Bangalore national highway (NH-4) and the Mumbai-Pune Expressway. This is a strategic extension of Pune-Mumbai Expressway by another 23.09 kms up to the BARC junction. The Maharashtra government, to ease the high-density traffic on this stretch, envisaged expanding the existing 3+3 lane bitumen road to a 10-lane (5+5) main carriageway in rigid pavement, under design, build, finance, operate and transfer (DBFOT) basis.

Following an international competitive bidding by the state government, the consortium of IVRCL and Kakade Infrastructure Pvt Ltd. (KIPL) was awarded the project. IVRCL, through its asset holding subsidiary company IVRCL Assets & Holdings Ltd and KIPL, incorporated Sion Panvel Tollways Pvt Ltd (SPTPL), a special purpose vehicle, to implement the project.

SPTPL has executed the concession agreement with the Maharashtra government for a concession period of 17 years 5 months, which is inclusive of the construction period.

The project consists of widening of existing and new major and minor creek bridges, flyovers, vehicular and pedestrian underpasses, and foot over-bridges. A toll plaza is to be set up at Kamothe at the end of the flyover near Taloja junction with 15+15 lanes for collecting toll.

Besides cutting down on travel time, the other benefits of this road widening are increase in traffic and trade activities, entry of more businesses in the region and infrastructural developments, the company said.