NHAI gets negative grant of Rs 504cr from IDAA Infra

IDAA Infrastructure Pvt. Ltd, SPV of IRB Infrastructure Developers Ltd, Leading players in the Infrastructure Road Sector are paying Negative Grant of Rs 504 crores to NHAI for the concession rights of 15 years on Bharuch-Surat section of NH8. In case of very high density traffic corridors, Negative Grant is an upfront payment made by the concessionaire to the NHAI/Govt for getting the concession rights on the project Corridor.

The project on BOT Basis is the First such project under NHDP Phase V for the four to Six laning of the already four laned National Highway.

This is the single largest BOT Project in the Road Sector at a total Project Cost of Rs 1404 crores( including Negative Grant of Rs 504 crores). The concession agreement was signed with NHAI in the month of July 06 and the Project has achieved financial closure in a record time of 3 months.

Consortium of Six Banks comprising of Union Bank of India (Lead Bank), Indian Overseas Bank, Canara Bank, Bank of India, and Indian Bank have provided Rupee Term Loan aggregating to Rs 1210.95 crores for a total tenor of 12 & ½ years. Bajaj Consultants Pvt. Ltd, Mumbai, leading Financial Advisors to the Infrastructure Sector have done the Financial structuring and syndication of the entire Rupee Debt of Rs 1210.95 crores for the Project and were the Sole Financial Advisors and Arrangers for the Entire Debt Transaction.

This is the largest Rupee debt tie up for a single Project in the Road Sector. Even for the earlier Mumbai "� Pune BOT Project in Aug 04 of the same group, Bajaj Consultants were the Sole Financial Advisors and Arrangers for a total Debt of Rs 1187 crores.

IRB Infrastructure Developers Ltd. Promoted by Mr. Virendra D. Mhaiskar is among the top 4 players in the Road Sector and known for its engineering capabilities and completing projects ahead of schedule and today has one of the largest portfolio of completed Road projects under BOT including the Mumbai- Pune Expressway.

The Cheque for Rs 504 crores towards Negative Grant to NHAI is being handed over by Mr. Virendra Mhaiskar, Chairman & Managing Director of IDAA Infrastructure to the Hon. Prime- Minister Dr. Man Mohan Singh on the 7th Dec 2006 at New Delhi.