IDFC, SNC-Lavalin form JV to develop roads, highways

NEW DELHI The Ashok Piramal Group’s IDFC Project Equity Fund and Canada’s biggest engineering group SNC-Lavalin Group entered into a joint venture agreement to develop road and highway projects in a publicprivate partnership across the country.

They plan to commit $250-300 million in equity in the JV company Piramal Roads Infra over the next 3-5 years and fund road projects to the tune of $1 billion. “With three partners in the JV, we are in a sweet spot in terms of bidding and can invest up toRs 6,000-7,000 crore if we get a suitable project,” said Aditya Aggarwal, MD at IDFC Project Equity. Ashok Piramal Group will hold 51% equity in the JV, while IDFC Project Equity will hold another 39% in it.

SNC-Lavalin, which is one of the world’s largest engineering and construction groups, will hold the remaining 10%. IDFC Project equity, a subsidiary of IDFC, routed the transaction through its India Infrastructure Fund. The privately-held Piramal Roads Infra is already an existing group company of the Ashok Piramal Group. It is currently developing a road project in MP. The JV will enable Ashok Piramal Group to diversify from its existing business.