Tata, Actis to bid for $2 bn worth of roads | autos | Hindustan Times
Today in New Delhi, India
Jan 22, 2017-Sunday
New Delhi
  • Humidity
  • Wind

Tata, Actis to bid for $2 bn worth of roads

autos Updated: Apr 30, 2010 00:20 IST
Highlight Story

The Tata Group and London-based private equity firm Actis aim to bid for $2 billion-worth (Rs 8,800 crore) of road projects in India over the next five years, a senior Actis official said on Thursday.

“We are quite optimistic and will be bidding for 5-6 new construction projects this year,” Sanjiv Agarwal, head of infrastructure at Actis in South Asia, said over telephone.

Italy’s biggest toll operator, Atlantia, will also be part of the consortium, Agarwal said.

India has made building of roads, bridges, airports and power plants a priority and expects private firms to fund half of a projected $1 trillion in infrastructure costs between 2012 and 2017.

TRIL Roads Pvt Ltd, a unit of unlisted Tata Realty & Infrastructure, will invest $122.5 million and Actis will contribute $77.5 million for the roads and highway projects, the two companies said in a joint statement.

Atlantia, which is a technical partner of Tata Realty, has agreed to invest $300 million to pick up a stake in a special purpose vehicles to be floated for setting up the projects, Agarwal said.

Another $300 million will be available from the Indian government as viability gap funding and the remaining $1.3 billion will be raised from financial institutions, according to media reports.

Viability gap funding is the money put in by the state to close the shortfall between the cost of an infrastructure project and the money private investors are willing to spend.