IRB Infrastructure Developers today said it has received 'appointed date' from the National Highway Authority of India (NHAI) for the Udaipur to Rajasthan and Gujarat Border highway project.
Appointed date means the date on which financial closure for a project is achieved and is also considered to be the date of commencement of the construction work.
The company' wholly-owned subsidiary Udaipur Tollway Private and a special purpose vehicle for the project, with total cost outlay of Rs 2088 crore, has received appointed date from NHAI.
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"Accordingly, the company has commenced construction work on the 113.8 km corridor of NH-8, as well as tolling from September 3, 2017, thus, starting revenue generation from day one," IRB said in a statement.
The project is to be developed on design, build, finance, operate and transfer model, and mandates six laning of 113.8 km corridor of NH-8 between Udaipur to Rajasthan and Gujarat border.
The concession period of the project is 21 years, which also includes construction span of 910 days.
IRB had offered premium of Rs 163.80 crore to NHAI, payment of which will commence post three years from the appointed date in terms of the concession agreement, it added.
"Revenue generation will be from the day one itself, being a six laning project," IRB's Chairman and Managing Director Virendra Mhaiskar said.
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