The Hindu Business Line : IDFC may pick up stake in L&T's road project SPV

The Infrastructure Development Finance Company (IDFC) may acquire 26 per cent stake in a special purpose vehicle (SPV) set up by Larsen and Toubro (L&T) for its Rs 1,250-crore highway-widening project on the Vadodara-Bharuch section. The project includes a negative grant of Rs 471 crore that would be paid to the National Highways Authority of India (NHAI) by L&T.

L&T will undertake the widening of the existing four-lane highway to six lanes, with amenities and support infrastructure.

The project has a 15-year concession period, including a construction period of 30 months.

"They have been our financial advisors and right from the beginning they have shown interest in picking up stake in our SPV for the project," the L&T Head Project Finance, Mr Shekhar Damle, said here on the sidelines of a CII meet.

Special purpose company

The project has been domiciled in a special purpose company called L&T Vadodara Bharuch Tollways Ltd, formed exclusively for the project. The concession agreement for the project would be signed between NHAI and L&T in the next few days.

L&T is also considering projects that include building IT parks in Hyderabad, Bangalore and Nagpur. "This is over and above ten urban infrastructure projects that we are working on that primarily include building IT parks or residential complexes for IT firms in various cities including Hyderabad, Kolkata, Chennai and Colombo (Sri Lanka)," Mr Damle said, adding that these projects are being implemented with partners.

More Stories on : Roadways | Mergers & Acquisitions | Larsen & Toubro Ltd | Gujarat

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IDFC may pick up stake in L&T's road project SPV