IRB Infrastructure Trust has secured the TOT-18 concession from NHAI for the Chandikhole-Bhadrak section of NH-16 in Odisha. The project involves an upfront payment of ₹3,087 Crore to NHAI. This win expands IRB’s footprint to a 13th Indian State and marks their second project in Eastern India. The concession period is for 20 years.
Odisha Concession Awarded
IRB Infrastructure Trust has been named the preferred bidder for the TOT-18 concession by the National Highways Authority of India (NHAI). The project entails Tolling, Operation, Maintenance, and Transfer of the Chandikhole-Bhadrak section of NH-16 in Odisha.
Project Details
The Chandikhole-Bhadrak section of NH-16 spans 74.5 kilometers. IRB Infrastructure Trust will pay an upfront concession fee of ₹3,087 Crore to NHAI. The concession period is revenue-linked for 20 years.
Strategic Expansion
With this win, the Group expands its presence to its 13th Indian State. It marks their second project in the Eastern Region of India, following a previous project in West Bengal. The project is part of the Golden Quadrilateral, increasing IRB’s market share to approximately 16% in this segment.
Financial Implications
The upfront payment of ₹3,087 Crore will be paid upon achieving financial closure. IRB’s order book will increase by approximately ₹1,600 Crore with this new project. The annual tariff revision will be fixed at 3% plus 40% of the Wholesale Price Index (WPI).
Management Commentary
According to Mr. Virendra D. Mhaiskar, Chairman & Managing Director, this win reinforces IRB Infra’s leading position in the TOT space. This achievement involves an upfront payment of approximately ₹34,000 crore to the Government across six TOT assets, and expands the aggregate asset base to approximately ₹94,000 crore.
Source: BSE