KMP Expressway announces financial closure for largest expressway

New Delhi, Jan 8 (UNI) KMP Expressway today announced the financial closure of 135 km-long Kundli-Manesar-Palwal Expressway, which is the country's largest expressway project awarded on a build operate and transfer basis.

KMP Expressway is the special purpose vehicle (SPV) executing the project also known as the western peripheral expressway. The SPV was created by a consortium of three companies, Delhi-based DS Constructions, the UK-based Apollo Enterprises and Hyderabad's Madhucon Projects, which were awarded the project by Haryana State Industrial and Infrastructural Development Corporation (HSIIDC).

Of the total cost of Rs 1,915 crore, the SPV has tied up a debt of Rs 1,149 crore through a consortium of 12 banks and financial institutions including IDBI Ltd, State Bank of India and associate banks and India Infrastructure Finance Company.

''Normally the infrastructure projects are financed in the debt to equity ratio of four is to one. But this project will be financed in the ratio of 60:40,'' HSIIDC Managing Director Rajeev Arora told reporters here.

HSIIDC has acquired and handed over 98 per cent of the required land to KMP Expressway for the implementation of the project.

It has spent Rs 585 crore (the amount is not involved in the above mentioned cost) on land acquisition and has estimated Rs 70 crore to be spent on acquiring the remaining land, Mr Arora said.

''This cost will be equally shared by the Haryana government and the Delhi government,'' he said.

The project is slated to be completed by July 2009. The concession period for the project is 23 years and nine months.

''KMP Expressway, as a concessionaires will charge toll at the rate of 1.3 times the rate fixed by the National Highway Authority of India (NHAI). The rate will change depending on the NHAI rate,'' Mr Arora said.

The expressway would connect four of the most important busiest National Highways, namely NH-1 near Kundli (Sonipat), NH-10 at near Bahadurgarh, NH-8 at Manesar (Gurgaon) and NH-2 near Palwal (Faridabad).

The Haryana government has planned many project around the expressway under its plan to create world class infrastructure in the state. ''A Global Urban Corridor will be devloped along the expressway, special economic zone has been planned beyond Manesar alongwith the expansion of industrial model townships (IMT) at Manesar,'' Mr Arora said.

This will be the last expansion of IMT Manesar and will cover 3,750 acres of land on both sides of the expressway. ''HSIIDC will develop this project on its own.'' Also, the government has planned IMTs at Rohtak, which will be 50 km away from the expressway and at Faridabad, for which 1,800 acres of land have been identified.

Earlier, making the announcement of the financial closure, KMP Expressway Chairman H S Kohli said, ''KMP Expressway project will match international standards of quality infrastructure. We have deployed state-of-the-art equipment with emphasis on aesthatics. We are confident that once completed, the expressway will create a benchmark in the pleasure of driving for the years to come.'' DS Constructions, Apollo Enterprises and Madhucon Projects handed over 98 per cent of the land for the project to KMP Expressways.

UNI