Maharashtra government to buy back Kolhapur project from IRB Infra

NEW DELHI: The Maharashtra government has shown keen interest in buying back its Kolhapur road project and the process is likely to be completed within 90 days, highways developer IRB Infrastructure today said.

The government earlier in the week allowed developers to divest 100 per cent equity in projects two years after completion to fast-track award and implementation of highway projects in the country by making additional funds available for investment in projects.

"The company has received a written communication from Maharashtra State Road Development Corporation ( MSRDC) that the government of Maharashtra is considering buying back Kolhapur Integrated Road Development Project undertaken by IRB Kolhapur Integrated Road Development Co Pvt (a wholly owned subsidiary of IRB) in Kolhapur," the company said in a filing to BSE.

It said in order to reach an amicable solution, the state government has formed a committee to do valuation of the project, and the "government has confirmed that the process will be completed within 90 days".

In the interim, MSRDC has directed the company to stop toll collection on the project, it said, adding that accordingly, the SPV has stopped toll collection in Kolhapur.

In the same filing, the company said its another SPV IRB Infrastructure Pvt has handed over Kharpada Bridge Project to the Maharashtra government after its successful completion.

The project was awarded to the SPV in 1997, which has been operating and maintaining it.

The company said: "These two BOT (build, operate, transfer) projects in aggregate contributed less than 0.5 per cent of the consolidated toll revenues of the company."

On the news of the buyback, the stock was trading at Rs 240.75, up over 5 per cent, on BSE at 1300 hours.