IRB Infrastructure Trust has announced an update regarding the execution of the Concession Agreement for the TOT-17 Project. The project, involving tolling, operation, maintenance, and transfer of key highway sections in Uttar Pradesh, will be managed through IRB Harihara Corridors Private Limited. The Trust paid an upfront Bid Concession Fee of Rs. 9,270 Crores to NHAI and its asset portfolio will increase by approximately 20%.
TOT-17 Project Agreement Executed
IRB Infrastructure Trust has finalized the Concession Agreement with the National Highways Authority of India (NHAI) for the TOT-17 Project. This was executed through its Project SPV, IRB Harihara Corridors Private Limited.
Project Details and Scope
The TOT-17 Project includes the following highway sections in Uttar Pradesh:
- Lucknow-Ayodhya Section of NH-28 (New NH-27) from km 15.400 to km 137.970.
- Ayodhya-Gorakhpur Section (Km. 136.759 to Km. 252.860) stretch of NH-28 (New NH-27).
- Lucknow-Sultanpur Section of NH-731 from Km. 90.370 to km. 217.795.
The total project length covers 366.096 KMs.
Financial and Operational Aspects
The Trust will pay an upfront Bid Concession Fee of Rs. 9,270 Crores to NHAI. The concession period is set for 20 years with revenue linked concession. The annual tariff revision will be a fixed 3% p.a. plus 40% of Wholesale Price Index (WPI).
Portfolio Impact
The addition of this project is expected to increase the Trust’s asset portfolio by approximately 20%, reaching around Rs 65,000 Crore. The project promises long-term revenue and cashflow generation visibility.
Project Management
IRB Infrastructure Developers Ltd will serve as the Project Manager for the TOT-17 Project.
Source: BSE