GIC to invest Rs 1,000 crore in IRB Infra's Ganga Expressway project

The project will connect the cities of Meerut and Budaun with a 129.7 km-stretch of six-lane highway (Representative image)

IRB Infrastructure Developers on October 19 said Singapore-based GIC Affiliates will be investing Rs 1,045 crore in the Ganga Expressway project.

IRB Infra made the announcement on the day it completed the equity raise of Rs 533.20 crore for the project. GIC "contributed Rs 261.29 crore and IRB Infra contributed Rs 271.90 crore," a press release issued by the company noted.

IRB Infra, which is spearheading the project, will hold a 51 percent stake in it, whereas, the remaining 49 percent will be held by GIC.

Both the companies will invest an aggregate of Rs 2,133 crore in the project, the release further said.

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IRB Infra will also act as the "project manager" for implementing the project. "As the project manager, it will be receiving entire flow of consideration towards EPC and O&M Works for the project, which will be in aggregate approximately Rs 10,459 crore (plus applicable taxes)," the company added.

"We are grateful to GIC for investing with us in developing the prestigious project for the nation. We are committed to delivering the project with high quality and safety standards for the state of Uttar Pradesh," IRB Infra managing director Virendra Mhaiskar said.

Notably, the Ganga Expressway Group 1 is a Greenfield BOT project that will connect the cities of Meerut and Budaun with a 129.7 km-stretch of six-lane highway, that is expandable to eight lanes.

"The project had achieved financial closure, where the senior lender had extended financial support of Rs 2,659 crore. IRB and GIC have committed equity and related infusion of Rs 2,133 crore and the viable gap funding from UPEIDA (Uttar Pradesh Expressways Industrial Development Authority) is Rs.1,746 crore," IRB Infra said.