IVRCL has entered into a definitive agreement with TRIL Road Pvt Ltd, a Tata Group company, to divest its stake in three highway projects. This is part of IVRCL’s strategic business plan to monetise its BOT assets.
The three highway projects are: Salem Tollways Limited (STL), Kumarapalayam Tollways Limited (KTL) and IVRCL Chengapally Tollways Limited (ICTL).
STL is operating 53 km of NH-47 from Salem to Kumarapalayam in Tamil Nadu, under a concession agreement signed with the NHAI. The project started commercial operations in June 2010.
KTL is operating 47 km of NH-47 from Kumarapalayam to Chengapalli in Tamil Nadu, under a concession agreement signed with the NHAI. The project started commercial operations in August 2009.
ICTL is developing 54.83 km of NH-47 from Chengapalli-Coimbatore-Walayar highway in Tamil Nadu under a concession agreement signed with the NHAI. The project is expected to start commercial operations in the first half of FY14.
IVRCL has plans to divest its stake in another three highway or water projects from the total portfolio of nine BOT projects and this is likely to take place in the next six months.