| Consolidated Toll Network of India (CTNL), a wholly-owned arm of Infrastructure Leasing & Financial Services (IL&FS) and Punj Lloyd have decided to enter into a 50: 50 venture for developing a Rs 200 crore road project at Thiruvananthapuram in Kerala. |
| CTNL and Punj Lloyd will be investing Rs 25 crore each as equity in the joint venture. |
| The balance Rs 150 crore will be raised as debt and subordinate debt. The project is an annuity-based one and will be constructed on a build, operate & transfer (BOT) basis with assets reverting to the state government after 15 years. |
| The project entails widening of roads across 12 corridors in the Kerala capital and construction of three flyovers. CTNL has operations and maintenance skills, while Punj Lloyd will be the engineering, procurement and construction contractor. |
| "We have been recently awarded a letter of intent by the state government," said K Ramchand president & CEO of CTNL. IL&FS, CTNL and Punj Lloyd already have a joint venture for implementing a Rs 500 crore project that entails widening of a 77 km stretch from Belgaum in Karnataka to Kagal near the border with Maharashtra as a part of the Golden Quadrilateral project. |
| Ramchand also explained that over the years CTNL was doing more than fund core sector projects""it was also taking up O&M contracts. |
| The plan by IL&FS and Larsen & Toubro to jointly undertake projects has not taken off so far. |
| "There are regulatory issues that need to be sorted out. We are keen on developing only large projects and it will take sometime to come up with such projects," Ramchand explained. The two sides had signed an MoU which stipulated that they would offer to develop projects on their own to state governments. |
On track
|
IL&FS arm, Punj Lloyd in JV for Kerala road project
Don't miss the most important news and views of the day. Get them on our Telegram channel
First Published: Feb 25 2004 | 12:00 AM IST
