Highways developer IRB Infrastructure Developers on April 27 said it has emerged as the successful bidder for executing a stretch of 158 kms (1,264 lane kms) of the Hyderabad Outer Ring Road (ORR) project in Telangana.
The project is under Toll-Operate-Transfer (TOT) model for a revenue linked concession period of 30 Years, and IRB will pay an upfront concession fee of Rs 7,380 crore to Hyderabad Metropolitan Development Authority (HMDA), it said in an exchange filing. After the Mumbai-Pune Expressway project, this is the country's second largest single asset TOT project, it added.
The project marks the highway construction company's entry into Telangana, the group's 11th state.
With this project, the company said its asset base exceeded Rs 70,000 crore, and the O&M order book increased by Rs 14,500 crore.
The company said it had participated in the international competitive bids that the Hyderabad Metropolitan Development Authority (HMDA) had requested for the project and was ultimately chosen as the successful bidder.
Virendra D. Mhaiskar, Chairman & Managing Director, IRB Infrastructure Developers, commenting on the development, said, the project increases IRB's asset base to over Rs 70,000 crore, taking their share in the TOT space up to 37 percent.
He added, "We endeavor to execute this project through our Pvt InvIT platform.”
IRB Infra recently reported strong toll collection for March 2023. It said toll collection by the company’s wholly-owned subsidiaries and joint venture under its private InvIT increased 21 percent YoY to Rs 3,699.91 million in March 2023.
On April 3, IRB Infrastructure Trust, sponsored by IRB Infrastructure Developers Ltd and supported by investment from GIC Affiliates, became the first privately placed InvIT to list on the NSE.
Currently, the IRB group's project portfolio comprises 23 road projects, including 18 BOT (build, operate, and transfer) projects, one TOT (toll-operate-transfer) project, and four HAM (hybrid annuity mode) projects, both in the private and public InvIT.
IRB Infrastructure Developers reported a 94.49 percent jump in its consolidated net profit to Rs 141.35 crore for the quarter ended December 31, 2022. The company had clocked a net profit of Rs 72.68 crore during the year-ago quarter.
Shares of IRB Infrastructure Developers surged 3.19 percent to end at Rs 27.15 apiece on April 27 on the BSE.
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