IRB Infra to raise Rs 750-cr debt for K’taka road project

MUMBAI: IRB Infrastructure Developers will raise Rs 750 crore of debt next month from a consortium of three financiers led by Infrastructure Development Finance Company (IDFC) to finance its Tumkur-Chitradurga road project in Karnataka.

“We will raise a debt of Rs 750 crore from IDFC and two other banks in October and with that our Tumkur-Chitradurga road project will achieve financial closure. We will finance Rs 450 crore of equity in the project through internal accruals,” Virendra D Mhaiskar, chairman and managing director, IRB Infrastructure Developers, told ET after the company’s AGM on Monday.

The six-laning project entails designing, building, financing and operation of the Tumkur-Chitradurga section of NH-4 for 114 kms in Karnataka. The build-operate-transfer project has a concession period of 26 years. IRB Infrastructure Developer’s total debt stands at Rs 2,900 crore. IRB Infrastructure has a portfolio of 16 road projects, including the Tumkur-Chitradurga project. Of these, 10 projects are operational while six projects are at different stages of execution.

The company’s order book for road construction is seen growing to Rs 12,000-14,000 crore by March from Rs 10,000 crore now, Mr Mhaiskar said. Mr Mhaiskar said that the company would continue to focus on National Highways Authority of India projects.

“We believe bidding for 30-40 projects, worth Rs 30,000-40,000 crore, can happen by March. We would be prequalified for projects worth Rs 25,000-30,000 crore,” he said.