IRB Infrastructure Trust has secured the TOT-17 project from NHAI, covering 366 km of the Lucknow-Ayodhya-Gorakhpur and Lucknow-Varanasi corridors. The project, awarded for an upfront fee of Rs. 9,270 Crores, involves tolling, operation, maintenance, and transfer for a 20-year concession period. This win increases IRB’s market share in the TOT segment to 42% and expands its asset portfolio significantly.
Project Overview
IRB Infrastructure Trust has been awarded the TOT-17 project by the National Highways Authority of India (NHAI). This project encompasses 366.096 km of key highway sections in Uttar Pradesh, including the Lucknow-Ayodhya-Gorakhpur corridor (NH-27) and part of the Lucknow-Varanasi corridor (NH-731).
Key Project Details
The project involves Tolling, Operation, Maintenance, and Transfer of the following sections:
- Lucknow-Ayodhya Section of NH-28 (New NH-27): from km 15.400 to km 137.970
- Ayodhya-Gorakhpur Section: from km 136.759 to km 252.860 on NH-28 (New NH-27)
- Lucknow-Sultanpur Section of NH-731: from km 90.370 to km 217.795
Financial Aspects
IRB Infrastructure Trust will pay an upfront concession fee of Rs. 9,270 Crores to NHAI. The concession period is 20 years and is revenue-linked. The annual tariff revision includes a fixed 3% increase plus 40% of the Wholesale Price Index (WPI).
Strategic Impact
This project is expected to increase the Trust’s asset portfolio by approximately 20%, reaching around Rs 65,000 Crore. IRB Infrastructure Developers Ltd will act as the Project Manager.
Market Position
With this award, IRB’s platform now commands a 42% market share in the TOT space. The Group Asset Base is expected to exceed Rs. 90,000Crs and the O&M Order Book is expected to grow by approximately 20%.
Source: BSE