IDFC eyes 26 pc stake in L&T's road project
IDFC is eyeing about 26 per cent in the Vadora-Bharuch road widening project estimated to cost Rs 1250 crores.india Updated: Jul 11, 2006 17:01 IST
Infrastructure Finance Development Company (IDFC) is eyeing to acquire 26 per cent stake in construction major Larsen and Toubro's Rs 1250 crore highway widening project on the 70 km Vadora-Bharuch stretch.
"They have been our financial advisors and right from the beginning they have shown interest in picking up stake in our special purpose vehicle for the project," L&T Head Project Finance Shekhar Damle said here on the sidelines of a CII meet.
He said IDFC is eyeing about 26 per cent in the project, which is estimated to cost around Rs 1250 crore, inclusive of a negative grant of Rs 471 crore.
The project has been domiciled in a special purpose company called L&T Vadodara Bharuch Tollways Ltd, formed exclusively for the project, the concession agreement for which is expected to be signed between the company and L&T in the next few days.
L&T will undertake the widening of the existing four-lane highway to six lanes, with amenities and support infrastructure.
He said the project has a 15-year concession period, including a construction period of 30 months.
Damle also said the company has completed the financial closure of two other road project in Tamil Nadu and Haryana, each estimated to cost about Rs 300 to Rs 500 crore for about 60 kms.
"We are also in the process of finalising the financial closure of other projects in Andhra Pradesh and another annuity project spread over Gujarat and Rajasthan," he added.