Expect traffic to rise on Siddhi-Singrauli belt: Gammon

Gammon Infrastructure bagged order worth Rs 871 crore for four laning of Sidhi - Singrauli stretch from Madhya Pradesh Road Development Corporation on BOT basis.

Parag Parikh, chief financial officer, Gammon Infrastructure told CNBC-TV18 that the company has bagged this project on a grant of Rs 339 crore. "Singrauli is one of hubs for thermal power projects. There is an estimated investment of more than Rs 50,000 crore coming on Singrauli belt. So, we are expecting to feed that as traffic on our highway," he added. Apart from this, Gammon secured four other projects recently, all these put together make an estimated project size of little over Rs 5,000 crore, he said. Also Read: Won't cut IRR below 18% for bagging new projects, says IRB Infra Below is the edited transcript of the interview. Also watch the accompanying video. Q: Can you take us through the letter of award (LOA) of around Rs 871 crore which you announced. When does the execution start? What are the margins that we could expect on this? A: This is an additional project that now we won over a series of wins that we have had over the last few months in terms. This is a belt connecting Sidhi and Singrauli. Though it is being managed by the Madhya Pradesh Road Development Corporation it is being announced as a national highway. Around Rs 871 crore is estimated cost of the project and we have won this on a grant of Rs 339 crore. The process from hereon for us is to sign the concession agreement. In line with any of such agreements we get six months for financial closure before which we start execution. The overall concession period is 30 years and the construction phase is two years. If you are aware of these belts of Sidhi and Singrauli