Maple Highways, an India road investment platform by global investment group CDPQ, has completed the acquisition of the Eastern Peripheral Expressway (EPE) that encircles the National Capital Region (NCR), the company said today.
Valued at Rs. 6,267 crore, the purchase of the toll operate transfer (TOT) project from the National Highways Authority of India (NHAI) is the largest road transaction to occur as part of the Union Government’s Asset Monetization Programme this year.
The 135-kilometre, six-lane express highway has been in operation since 2018 and was designed to decongest Delhi of commercial traffic, and runs through the states of Haryana and Uttar Pradesh down the eastern side of the NCR. All lighting and other utilities along the expressway are fully solar-powered, the company said.
Popularly known as National Expressway 2, EPE is India’s first Intelligent Transport System (ITS) enabled road. It is equipped with a drip irrigation system and rainwater harvesting structures every 500 metres. It has a closed loop tolling system and 99% of its revenue is collected through electronic tolling, using the interoperable RFID tag, known to millions of drivers as FASTag.
“For CDPQ, the acquisition is a major step forward in building a scaled portfolio of strategically located, long-term revenue generating road assets in India,” it said in a press statement.
Earlier this year, Maple Highways also completed the acquisition of the Shree Jagannath Expressway, a 67-kilometre toll road project from Bhubaneswar to Chandikhole, in Odisha, eastern India.
Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure, CDPQ, said: “Quality
highways ensure the Indian economy continues to move and grow. As the reconfiguration of global supply chains accelerates and the volume of goods increases in India, we look forward to further developing our roads portfolio.”
Indian highways represent a large and growing market opportunity, with a robust pipeline that includes the government’s ongoing road monetization programme, TOT, a hybrid annuity
model of toll roads aimed at accelerating public-private partnerships, as well as Build-Operate-Transfer (BOT) models.
In creating one of India’s first independent, dedicated road Infrastructure Investment Trusts (InvIT), CDPQ has also chosen to bring domestic capital alongside itself, drawing interest from leading investors such as IIFL AMC and the family office of the Taparia family of Famy Care Group in an emerging infrastructure asset class in India, it said.
Anup Vikal, CEO, Maple Highways added: “Maple Highways is a truly differentiated platform, a relatively new model for investor-backed InvITs to own, operate and improve India’s highways. As the new custodian of EPE, Maple Highways will seek to build on the expressway’s strong environmental credentials, while benefiting from CDPQ’s leading experience in the roads sector, including industry-leading highway management technology practices, and its sharp focus on ESG.”
CDPQ is the second-largest institutional investor in infrastructure globally, with net assets of CAD 45 billion in its infrastructure portfolio, including in India, which remains a strategically important market for CDPQ given the country’s long-term growth potential and infrastructure needs
