SREI International Finance Limited (SREI), the national infrastructure project finance company, has signed up the financing deal for two expressway projects in Madhya Pradesh.
These are the 247 km Rewa- Jaisinghnagar - Shahdol - Amarkantak Road and the 141-km long Satna - Maihar - Parasimod - Umaria Road.
The project highways pass through three industrial belts and mineral rich areas of Madhya Pradesh. The company said in a release that the Rewa Amarkantak Highway was the longest stretch of the recently launched Madhya Pradesh state programme for development of important state highways.
The project involves strengthening, widening, upgradation, operation and maintenance of the two state expressway stretches. The project will be implemented by Rewa Tollways Pvt Ltd (Rewa).
The Rs 212.51 crore project would be supported by the Madhya Pradesh government in the form of a grant of Rs 82.60 crore. The balance project funding would be through equity infusion of Rs 28 crore and debt finance of Rs 101.91 crore. SREI would be supporting the project through a loan of Rs 34.91 crore to the two projects.
SREI had in 2002 participated in financing of the Tada Nellore project, the largest BOT project in the country.
It was the first project to have achieved financial closure under the model concession scheme and the first BOT road project in which 100 per cent foreign direct investment was allowed. Rewa has been set up by IJM Corporation, Berhad, one of Malaysia
