IRB Infrastructure Bags ₹2,663 Crore Project Management Mandate for National Highway Tollways

In a major move toward expanding its long-term asset management portfolio, the Board of Directors of IRB Infrastructure Developers Limited has approved entering into Project Implementation Agreements (PIAs) to serve as the Project Manager for the IRB InvIT Fund (a publicly listed Infrastructure Investment Trust).

The project management contracts are valued at approximately ₹2,663 crore on a fixed-price basis (inclusive of applicable taxes).

Contract Value, Span, and Project Pipelines

The massive multi-decade agreement will run across a weighted average life of approximately 18 years, matching the balance concession period of two massive national highway stretches.

The scope of work covers dedicated operational oversight, design, and project management of specialized tollways across two major states:

Solapur Yedeshi Tollway Limited (SYTL): Spans a design length of 98.717 km along NH-211 (from km 0.000 to km 100.000) in Maharashtra. The project involves the operation and maintenance of this four-laning section under a Design, Build, Finance, Operate, and Transfer (DBFOT) toll setup.

CG Tollway Limited (CGTL): Encompasses Package-2 of the Kishangarh-Udaipur-Ahmedabad section along NH-79 in Rajasthan. This stretches across 124.87 km (from km 90.000 near Gulabpura to km 214.870 at the end of the Chittorgarh Bypass) on a Build-Operate-Transfer (BOT) toll mode.

Transaction Structuring and Effective Date

The transaction is structured to align directly with SEBI's Infrastructure Investment Trusts Regulations. The corporate appointment as Project Manager will officially come into effect once IRB Infrastructure Trust finishes transferring 100% of its equity share capital in both Special Purpose Vehicles (SYTL and CGTL) over to the Public InvIT Fund.

IRB Infrastructure Developers confirmed that it holds no pre-existing equity shareholding in either of the target SPV entities.

Source : Equity Bulls

Keywords

IRBInfrastructureDevelopers PIAs IRBInvITFund