Mumbai (Maharashtra) [India], May 7 (ANI): Welspun Enterprises, part of the 2.7 billion dollar Welspun Group, on Thursday announced plan to acquire a build-operate-transfer (BOT) toll project from Essel group's company Mukarba Chowk Panipat Toll Roads Ltd (MCPTRL).
The acquisition through subsidiary Welspun Infrafacility Pvt Ltd is being done by way of harmonious substitution which was recommended by the project lenders and subsequently approved by the National Highways Authority of India (NHAI).
As on date, MCPTRL has completed 31 per cent of the 71.1 km Mukarba Chowk Panipat Highway (NH-44) project.
The original total cost was estimated to be Rs 2,122 crore of which Rs 1,593 crore is the balance to be incurred to complete the project. All existing lenders to the project have agreed to continue supporting the project and thus the project is fully financially tied up.
The company expects to complete the project by June 2021. As per the concession agreement, the scheduled concession end date is October 2033 extendable up to 3.4 years based on actual average traffic in the year 2025.
The current toll revenue for only Haryana section is about Rs 200 crore per annum. Upon achieving commercial operations date for both Haryana and Delhi section, the company expects to collect a toll of Rs 300 crore per annum.
"We are focused on profitable growth of our infrastructure portfolio and this transaction is another step in that direction," said Chairman of Welspun Group B K Goenka.
"We believe that this addition to our existing road portfolio will create sustainable value for our shareholders and improve the overall returns for the company," he said in a statement.
Welspun Enterprises is an operating company in the infrastructure business. The company has a robust portfolio of hybrid annuity model (HAM) road projects of Rs 8,500 crore.
The Delhi-Meerut Expressway project was the first HAM project to be completed in the country (332 days ahead of schedule) and is the first HAM project to be re-financed post-completion.
Other HAM projects are also in advanced stages of implementation. Apart from HAM projects, Welspun Enterprises has also developed and operated over 500 km of BOT toll road projects.
The Welspun Group is one of India's fastest-growing conglomerates with businesses in line pipes, home textiles, infrastructure, oil and gas, advanced textiles and floorings. It has a foothold in over 50 countries with 26,000 employees and over one lakh shareholders. (ANI)