NHAI approves IDFC buyout of Gurgaon expressway developer

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Timsy Jaipuria: New Delhi, Jan 31 2013, 04:11 IST

The National Highways Authority of India (NHAI) board on Wednesday approved the proposal allowing IDFC to buy out the 74% stake equity in the Delhi-Gurgaon expressway project from the current developer DSC. Sources told FE that IDFC, the lead banker in the lender consortium, will pick up 74% stake while of the remaining 26%, 24.8% will be with DSC and 1.2% with the Jaypee Group. Since IDFC is likely to pick up the entire debt of R1,600 crore of the DSC, the 74% stake transaction would take place for a token amount of R1.

Sources said IDFC will give the day-to-day management of the expressway to Feedback Brisa Highways OMT, a 60:40 JV between Feedback Infra and Brisa. IDFC, in turn, owns a 24% stake in Feedback Infra.

Sources said NHAI was keen that IDFC pick up the entire 100% stake in the project but it could not be done at this stage because of some policy restrictions in the model concession agreement. The issue would be taken up once the restrictions are lifted through suitable amendments. The ministry of road transport and highways is seeking Cabinet approval for an easier exit policy for road developers which would allow the concessionaire to make a complete exit immediately after commencement of commercial operations. Under the current policy, the original concessionaire has to keep at least a 26% stake for the entire concession period. A 100% exit is possible only once the new policy is in place.

“IDFC had earlier expressed interest to buy

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Akhil Sharma | 31-Jan-2013Reply | Forward

This new is absolutely misleading. IDFC takeover is correct but Operations management to Feedback is absolutely wrong and misleading. The reporter should verify the facts.