The Special Purpose Vehicles (SPVs) of IRB Infrastructure Trust, India's largest highways infrastructure investment trust, have initiated tolling operations for the TOT 12 and TOT 13 projects, commencing from 1 April 2024.
The SPVs, namely IRB Lalitpur Lakhnadon Tollway representing TOT 12 project, and IRB Kota Tollway and IRB Gwalior Tollway representing TOT 13 bundle, have made an upfront payment of Rs. 6,111 Crores as Concession Fee to the National Highways Authority of India (NHAI), facilitating the start of toll collection.
The NHAI has issued Appointed Dates for both projects following the receipt of the upfront payment. With this development, all TOT projects within the IRB Infrastructure Trust are now operational, contributing to revenue generation.
The financial closure of both projects has been achieved with an aggregate debt tie-up of Rs. 4,831 Crores, complemented by equity contributions totaling approximately Rs. 2,253 Crores by IRB Infrastructure and affiliates of GIC in a 51:49 ratio through IRB Infrastructure Trust.
Virendra D. Mhaiskar, Chairman & Managing Director of IRB Infrastructure, expressed his satisfaction with the successful funding of the two TOT projects ahead of schedule. He highlighted the significant achievement, emphasising the operational commencement of tolling operations across the entire TOT portfolio. Mhaiskar conveyed his gratitude to stakeholders for their support and trust, pledging the company's commitment to operational excellence to ensure a world-class travel experience for highway users.
The key highlights of the projects underscore the scale and significance of the infrastructural developments undertaken by IRB Infrastructure Trust. The TOT12 project boasts an impressive four-lane highway spanning 316 kilometres, while the TOT13 project encompasses a four-lane highway extending across 110 kilometres. Reflecting the commitment to the projects, the SPVs made substantial upfront payments of Rs. 4,428 Crores for TOT12 and Rs. 1,683 Crores for TOT13 as Concession Fees to the National Highways Authority of India (NHAI). With estimated project costs amounting to Rs. 5,182 Crores for TOT12 and Rs. 1,901 Crores for TOT13, these projects signify significant investments in the nation's infrastructure. Both projects are characterised by a revenue-linked concession period of 20 years, ensuring sustained returns on investment. The successful debt tie-up further solidifies the financial backing, with lenders providing Rs. 3,500 Crores for TOT12 and Rs. 1,331 Crores for TOT13. Additionally, IRB's equity contributions through the Trust play a pivotal role, amounting to Rs. 859 Crores for TOT12 and Rs. 291 Crores for TOT13, reflecting the company's commitment to driving infrastructural growth and development.
The successful execution of these projects underscores IRB Infrastructure's commitment to enhancing the country's highways infrastructure while driving sustainable economic growth.
