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GMR Infrastructure today announced completion of Chennai Outer Ring Road Phase 1 project in Tamil Nadu, saying this will add Rs 118 crore every year to the cash flow of the company.
GMR has won the 29.65 km project through international competitive bidding.
"GMR Highways is pleased to announce the completion of Chennai Outer Ring Road Phase I Project. Government of Tamil Nadu and all concerned agencies issued a provisional Certificate for Completion.... This milestone will add to the cash-flow of GMR by Rs 118 crore every year for the next 17 and half years," the company said in a statement.
It added about Rs 95 crore to the revenues of road project in the fiscal ended March 31, 2014.
Completed on design, build, finance, operate and transfer basis, the GMR Chennai Outer Ring Road project connects Vandalur on NH-45 to Nemillicheri on NH-205 via Nazaratpet on NH-4.
The concession period of the project is 20 years including 30 months of construction.
The company said commissioning of the project will significantly ease traffic congestion along the western periphery of Chennai city.
The Outer Ring Road connects the northern and southern suburbs of Chennai and will be a catalyst for expansion of the city and help growth of the industrial hubs in this region through better connectivity, it said.
Commenting on the commissioning of the project BVN Rao, Business Chairman of GMR Urban Infrastructure & Highways said: "The Chennai Outer Ring Road is GMR Group's 9th highway project. Over the years we have developed significant expertise in design, construction and operation of Highway projects."
"With growing urbanisation and more cities planning ring roads and peripheral roads to enable better connectivity, GMR Group is ideally placed to partner with state governments in similar projects," he added.
Shares of GMR Infrastructure were trading at Rs 25.85 apiece, up 0.58% on the BSE at about 1330 hours.
GMR Infrastructure is a Bangalore headquartered global infrastructure major with interests in airports, energy, highways and urban infrastructure sectors.
