IRB Infrastructure Developers achieve financial closure for road project in K'taka

Written by PTI | Mumbai | Updated: Dec 27 2013, 00:11am hrs
RoadIRB Infrastructure Developers said it has achieved financial closure of Rs 1,406 cr for road project. Reuters
IRB Infrastructure Developers today said it has achieved financial closure of Rs 1,406 crore for its road project in Karnataka.

"IRB's wholly-owned subsidiary IRB Westcoast Tollway has tied up project finance of Rs 1,406 crore for the Goa- Karnataka border project in Karnataka," the company said in a statement.

The total cost of the project is Rs 2,639 crore, out of which viability gap funding from the National Highways Authority of India (NHAI) is to the extent of Rs 536 crore, while equity contribution by the company will be around Rs 697 crore. The average cost of project finance is around 11.75 per cent per annum.

A consortium of lenders, led by IDBI Bank and comprising of Allahabad Bank, Bank of Baroda, Bank of India, Canara Bank and Union Bank of India have financed the project, the release said.

The company has been awarded the contract for construction of a Rs 1,500-crore road project on design, build, finance, operate and transfer basis in Maharashtra. The project is expected to be completed in 910 days and the concession period for the same is 29 years, it said.

IRB has sought Rs 189 crore as VGF from NHAI for the project, the release said.