IL&FS Transportation signs about Rs 587-crore pact with Jharkhand government

NEW DELHI: IL&FS Transportation Networks today said its subsidiary has signed a concession agreement with the Jharkhand government for development of six-laning of Ranchi Ring Road at an estimated cost of Rs 587.60 crore.

"The concession agreement for development of six-laning of Ranchi Ring Road, section VII from Kathitanr to Karma comprising 23.575 kms, has been signed by Jharkhand Infrastructure Implementation Co, a subsidiary of the company, with the Jharkhand government on a build-operate-transfer (BOT) basis on August 7, 2015," the company said in a BSE filing.

It further said: "The estimated cost of the project is Rs 587.60 crore. The company shall receive annuity of Rs 111.64 crore per annum upon completion of the project."

IL&FS Transportation Networks said the project is on an annuity basis with a concession period of 17.5 years, including construction period of 2.5 years.

The stock of IL&FS Transportation Networks was trading at Rs 130.75, down 7.47 per cent, on BSE.