IDFC to buy Gurgaon expressway from DSC

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SummaryThe National Highways Authority of India and IDFC are close to an agreement under which the latter will take over the bedevilled Delhi-Gurgaon expressway project from the current developer DSC.

commercial operations. Under the current policy, the original concessionaire has to keep at least a 26% stake for the entire concession period. Once the new policy is in place, DSC will be able to make a complete exit from the project.

According to observers, if the proposed transaction is approved by the NHAI board, it will be a win-win situation for all three parties — contractor, lenders and NHAI. The lenders’ consortium as of now is led by IDFC and includes PSU banks such as Punjab National Bank and Bank of India.

DGSCL already has huge liability including the Rs 1,600-crore debt that will be taken over by IDFC, and the need for immediate measures to improve the traffic and road conditions will be its responsibility.

If the deal goes through, IDFC will be collecting toll till 2023 to recoup the funds. For NHAI, the salvaging of the project is crucial in sustaining investor interest in public-private partnership projects in the sector.

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