IRB Infrastructure Developers has won the TOT (Tolling, Operation, Maintenance & Transfer) project for the Nehru Outer Ring Road in Hyderabad, Telangana from the Hyderabad Metropolitan Development Authority (HMDA).
This is the second-largest single asset TOT project in the country, after the Mumbai-Pune Expressway project and will take the company’s share in the ToT space to 37%.
IRB will pay an upfront concession fee of Rs 7,380 crore to HMDA for a revenue-linked concession period of 30 years, post financial closure. With this, IRB’s order book will increase by Rs 14,000 crore.
Virendra Mhaiskar, chairman & managing director, IRB Infrastructure Developers, said the company would execute the project through its private InVIT platform. “This prestigious project would take our asset base to Rs 70,000 crore,” Mhaiskar said in a statement. The total length of the road to be constructed is 158 km or 1,264 lane km and will comprise 22 toll plazas, 22 interchanges, eight major bridges, 122 minor bridges, a flyover, four railway over-bridges, 168 underpasses, large number of culverts & causeways.
The total length of the service road is approximately 294 km. The annual tariff revision has been fixed at 3% per annum, compounded annually plus 40% of the WPI, as per the rules.
After this win, IRB will have an asset base of over Rs 70,000 crore across 11 states housed in the parent company and two InvITs. The company has constructed and maintains around 17,200 lane km. It has a share of around 20% share in the Golden Quadrilateral project, the largest by any private infrastructure developer.