The Hindu Business Line : Foreign funds eye Bangalore, Mysore expressway project

Several foreign funds are keen on investing in the Kalyani-promoted Bangalore-Mysore Infrastructure Corridor project. Among them is the New York-based Indus Venture Capital Fund with a large offer, besides British, Japanese, US and Hong Kong-based funds, according to Mr Ashok Kheny, MD of NICE, the special vehicle implementing the Rs 2,450-crore project.

Confirming the spate of interests in the project, Mr Kheny told Business Line on telephone from the US, "We want to expedite the project and build the road to Mysore by December 2007. We will need Rs 1,500 crore for the next two phases, which we plan to take up simultaneously." There are lending or equity options and a decision would be taken in 2-3 months.

Indus has made a commitment to initially bring in $1 billion, with an option of another $3 billion subsequently on the township components — offices, residential complexes and amenities. NICE is also in talks with domestic funds for investing in smaller sub-projects in the townships.

The Rs 1,150-crore phase 1 is nearing completion and NICE (Nandi Infrastructure Corridor Enterprises) wants to have it ready by June, Mr Kheny said.

NICE recently replaced its lead lender, ICICI Bank, with Allahabad Bank in the 11-FI consortium. Mr Kheny said, "We are now spending Rs 1 crore a day on the road and would like to increase the pace to a daily spend of Rs 3 crore. As we are expediting the project, we needed a more friendly bank on better terms."

NICE is looking at strategic investors for its various components — the 111-km, grade separated toll expressway to Mysore and the amenities at the five townships along the expressway.

Anil Dhirubhai Ambani Enterprises has picked up 15 per cent equity worth Rs 180 crore in NICE subsidiary, NECEL (Nandi Economic Corridor Enterprises Ltd), the SPV for phase 1; it will be the partner for broadband connectivity and the 4x100 MW power plant that has been sanctioned for the townships.

Phase 1 that is under way includes a 41-km road that partly encircles outer Bangalore and links Hosur and Tumkur; a 9-km link from the city; and a 12-km stretch of the expressway up to Bidadi.

Meanwhile, talks are on with Metrail India to have a monorail along the expressway between the two cities. Metrail India is floated by Frazer Nash Research Plc of Britain, Metrail AG of Switzerland and MMC Metrail Sdn Bhd, Malaysia.

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Foreign funds eye Bangalore, Mysore expressway project