Srei-Madhucon bags NH-11 project

Srei Infrastructure Finance and Madhucon Projets have jointly been awarded a road development contract in Rajasthan on build, operate and transfer (BOT) basis for a period of 25 years.

The contract is for the improvement, operation, maintenance and strengthening of existing two-lane roads and widening to a four-lane divided NH 11 highway of 63 to 120 metres.

For the purpose, Srei and Madhucon have floated a special purpose vehicle (SPV) "" the Madhucon Agra-Jaipur Expressways "" with an authorised capital of Rs 40 crore.

Srei Infrastructure has taken 70 per cent stake in the Madhucon Agra Jaipur Expressways' paid-up capital of Rs 10 lakh. Srei is planning to invest about Rs 20-25 crore in the equity of the project.

The project will be completed in stage 1 and stage 2. The project stretch is part of the highway from km 63 to km 120 at Mahua of NH-11 connecting historical cities "" Bikaner, Jaipur, Bharatpur, Fatehpur Sikri and Agra.

Stage 1 will be completed within 36 months from the date of the concession agreement and stage 2 construction, which starts from the 72nd month, has to be completed within 96 months from the date of signing the concession agreement. The toll collection will start from the date of completion of stage 1 i.e. 36 months from the date of concession agreement.

The concession period including the construction period for this project is 25 years. The National Highway Authority of India (Nhai) will release a grant of Rs 96 crore for this project. During the construction period, 40 per cent of the total grant by way of equity support i.e. Rs 38.40 crore will be disbursed, while the balance will be released within seven years from the commercial operation date.

Srei Infrastructure and Madhucon Projects entered into a memorandum of understanding to form a consortium to participate in some of the tenders floated by Nhai. As per the consortium, Madhucon Projects will be the lead technical member and Srei Infrastructure the lead financial member.