IVRCL to sell road projects to Tata firm

Infrastructure firm IVRCL has entered into a deal with TRIL Roads, a Tata company, to sell three of its road assets. The move by IVRCL is believed to be part of a strategy to monetise its build-operate-transfer assets, according to a media report.

As part of a strategy to monetise its build-operate-transfer assets, infrastructure firm IVRCL has entered into a deal with TRIL Roads to sell three of its road assets, reports DNA.

TRIL Roads is a special purpose vehicle of Tata Realty and Infrastructure Ltd, a wholly owned subsidiary of Tata Sons.

Under the deal, IVRCL would divest its stake in Salem Tollways Ltd (STL), Kumarapalayam Tollways Ltd (KTL) and IVRCL Chengapally Tollways Ltd (ICTL). All the three road projects carry a cost of about Rs2,200 crore. However, IVRCL has not disclosed the value of the transaction.

“The total deal consideration shall be realised upon satisfaction of certain agreement related conditions and National Highways Authority of India (NHAI) and lenders approvals,” IVRCL said in a statement.

All the three road projects that have been put on the block are in Tamil Nadu. STL is operating the 53 km of NH-47 from Salem to Kumarapalayam under a concession agreement signed with NHAI. The project commenced commercial operations in June 2010.

KTL operates the 47 km of NH-47 from Kumarapalayam to Chengapalli under a concession agreement signed with NHAI. The project commenced operations in August 2009.

ICTL is developing the 54.83 km of NH-47 from Chengapalli-Coimbatore-Walayar highway under a concession agreement signed with NHAI. The project is expected to achieve the commercial operations during the first half of the financial year 2014.

“IVRCL has further plans to divest in another three highway or water projects out of the total portfolio of nine BOT projects and expects this to take place in the next six months,” the company said.

IVRCL operates in the verticals of water and environment with core expertise in water pipelines wherein the company has already laid over 25,000 km of pipelines across the country, the report further stated.