GMR ties up Rs.1,700 crore for Hyd highway

Hyderabad: GMR Infrastructure has tied up funds for its Rs 2,190 crore Hyderabad-Vijayawada highway project, said a senior official from the firm. The debt component of the 181 km project is about Rs1,700 crore.

“IDBI Bank has underwritten the loan and we have sent the sanction letter and draft documents to NHAI (National Highways Authority of India),” said the official requesting anonymity. The interest rate on the loan is 10.75% and IDBI is looking into syndication of the loan, he said.

GMR is also close to tying up funds its other road project, a 30 km stretch outside Chennai. “ICICI Bank is underwriting that loan and we should achieve closure in about 15 days,” the official said. The project is worth Rs 1,200 crore. He said the size of the debt component was being worked out.

DNA Money had on November 28 reported that GMR would arrange funds for both the build-operate-transfer (BOT) projects by February.

The Hyderabad project is toll-based and GMR bagged it in May last. The firm won the annuity-based Chennai road project the following month. The projects have a concession period of 25 and 20 years, respectively.

GMR is one of the largest highway developers in the country and currently operates six BOT projects totalling a length of 421 km.
Asked of the fallout of the new NHAI clause, the official said the finer details were not clear yet. “We are still looking at it and if need be, the NHBA (National Highway Builders Association) will take it up with the NHAI,” he said.

The clause states that a developer will not be able to bid for NHAI projects if it has three or more highways pending financial closure.

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