IL&FS Transportation bags Rs 587.60 crore road project in Jharkhand

NEW DELH: IL&FS Transportation Networks today said Jharkhand Government has issued a letter of acceptance to its subsidiary for six laning of Ranchi Ring Road at an estimated cost of Rs 587.60 crore.

Following the announcement, shares of IL&FS Transportation Networks rose by 1.44 per cent to 144.15 apiece on BSE.

"Government of Jharkhand has issued Letter of Acceptance dated July 10, 2015 for 6 laning of Ranchi Ring Road, Section VII from Kathitanr to Karma comprising of 23.575 km for development by Jharkhand Infrastructure Implementation Co Ltd, a subsidiary of the company, on a Built Operate Transfer ( BOT) basis," the company said in a BSE filing.

It further said: "The project is on annuity basis with a concession period of 17.5 years including construction period of 2.5 years. The estimated cost of the project is Rs 587.60 crore."

The company added that it will receive a semi-annual annuity of Rs 55.82 crore.