IRB Infrastructure Trust Executes Concession Agreement for TOT-17 Project Worth ₹9,270 Crore
IRB Infrastructure Trust executed a Concession Agreement with NHAI for the TOT-17 Project. The project involves Tolling, Operation, Maintenance, and Transfer of three highway sections in Uttar Pradesh, spanning 366.096 KMs. The Trust will pay ₹9,270 Crore upfront for a 20-year concession period.
The project is a major addition to the company's portfolio, increasing its value by approximately 20% and providing long-term revenue and cash flow visibility.
The execution of a concession agreement for a significant project with a substantial concession fee and long-term revenue visibility indicates positive business development.
IRB Infrastructure Developers Limited has announced an update regarding the TOT-17 Project through its associate, IRB Infrastructure Trust. The Trust's Project Special Purpose Vehicle (SPV), IRB Harihara Corridors Private Limited, has executed the Concession Agreement with the National Highways Authority of India (NHAI).
This agreement pertains to the Tolling, Operation, Maintenance, and Transfer of the Lucknow-Ayodhya Section of NH-28 (New NH-27) from km 15.400 to km 137.970, the Ayodhya-Gorakhpur Section (Km. 136.759 to Km. 252.860) of NH-28 (New NH-27), and the Lucknow-Sultanpur Section of NH-731 from Km. 90.370 to km. 217.795 in Uttar Pradesh. The total length of the project is 366.096 KMs.
The Trust will pay an upfront Bid Concession Fee of ₹9,270 Crores to NHAI for a revenue-linked Concession Period of 20 years. Annual tariff revision will be a fixed 3% per annum plus 40% of the Wholesale Price Index (WPI). Tolling and Operation & Maintenance activities will commence from the Appointed Date.
This project is expected to accrete approximately 20% to the Trust's portfolio, bringing it to around ₹65,000 Crore, with long-term revenue and cashflow generation visibility. IRB Infrastructure Developers Ltd will serve as the Project Manager for this undertaking.
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