GMR achieves financial closure for TN road project

Hyderabad, Oct 18 (UNI) GMR Group Consortium, comprising GMR Infrastructure Ltd and GMR Energy Ltd, has achieved financial closure for the 73 km Tindivanam-Ulundurpet Road project in Tamil Nadu.

The capital cost of the project totalling Rs 795 crore was being met by way of equity and debt. The debt component of Rs 596.25 crore, syndicated by ICICI Bank, had been tied up with ten banks - Andhra Bank, Bank of India, Bank of Baroda, Central Bank of India, Canara Bank, IDBI, IIFCL, Punjab National Bank, Union Bank of India and ICICI Bank as lead lender. The equity component was Rs 198.75 crore.

A company release said the National Highways Authority of India (NHAI) invited bids from empanelled, short-listed road development agencies for improvement, operation and maintenance of the NH-45 section between Tindivanam and Ulundurpet in Northern Tamil Nadu.

GMR consortium won the bid for strengthening and widening the existing two lane road to a four lane dual carriageway measuring 73 km on a BOT (Toll) basis for a concession period of two decades. It overcame after stiff competition from other infrastructure majors.

The concession agreement was signed in April, 2006, said the release.

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