NHAI to infuse Rs 500cr VGF in Panvel project: Supreme Infra

In an interview with CNBC-TV18, Supreme Infrastructure VP - Projects Prashant Kalantri talked about a major development for the company as well as goings-on in its other projects and the debt picture.Below is the transcript of Prashant Kalantri’s interview to Nigel D’souza and Reema Tendulkar on CNBC-TV18.Nigel: We learn that there was a meeting over the weekend and in fact, there is a proposal to lend some funding to the company. Could you confirm this? As well, I believe your Panvel project was considered for one-time funding. You have received some communication about that. Could you confirm that and to what extent?A: There is significant news for us. There is an infusion of around Rs 500 crore. The viability gap funding which we required has been taken care of now and this is really big news for us because it is as good as a new engineering, procurement and construction (EPC) contract of Rs 500 crore. The funding problem will not be there now in this project.Reema: As of now, could you tell us what percentage of the Panvel project has been completed and now that you have got the additional Rs 500 crore coming in from the National Highways Authority of India (NHAI) which will meet the required funding. How soon should we expect completion?A: Around 60-65 percent of execution work is over. Now, completion of the first phase would get over in December 2016 and the next phase would be around 2017.Reema: And have all your funding requirements been met for phase-I as well as phase-II?A: Yes, absolutely. Funding has been met for phase-I as well as phase-II now.Nigel: Could you tell us what was that total amount because you are saying that you are getting Rs 500 crore now. So, that is going to be enough, around Rs 500 crore will be infused for phase-I as well as phase-II, what was the total requirement?A: Because of land acquisition issues in the last 2-3 years, the total requirement had gone up to Rs 1,250-1,300 crore.Reema: Is there any other project of yours?A: No, this is the only one which was under Prime Minister’s Office and the direct equity infusion has been done by the government now. At least this announcement has been made and we are hopeful that it will be done soon now.Reema: When are you expecting the disbursement of money from the NHAI?A: This meeting was there only in the last week, so even we have to get something from them.Nigel: There were reports that suggested that your Jaipur Ring project as well was stuck, is that true? What is going on on that front?A: We are talking to an investor, as we told you last week in an interview. Talks are going on at very advanced stage now and we are very hopeful that by this weekend of in a fortnight’s time, we should be able to close in on that.Reema: In terms of closing that, are you going to just get money in? Will you be divesting stake as well? Give us what the nature of talks are.A: We are getting an investor to infuse equity there. Reema: How much equity then?A: Around Rs 80-100 crore.Reema: For what percentage equity?A: That would be taken care of. Once we put this equity, then the bank’s disbursement will also start taking place, and the project would be taken care of.Nigel: What exactly is your debt? You were looking to bring it down. I had ballooned up actually, but good news that a couple of your projects are moving on, you are talking about some equity infusion as well. What is your debt currently, what could it be by FY17 and FY18 end? What is the roadmap?A: As I said in the previous interview, it is around Rs 2,700 crore, but then we have some build, operate, transfer (BOT) assets against it while things like strategic sale are also going on. We want to bring the debt down to Rs 1,200 crore. So, FY18, our target will be to get it down to Rs 1,200 crore.