To bid mainly for roads, toll point projects
The companyplans to dilute about 20 per cent of its equity and is in talks with a few funds for this.
The equityinfusion is likely to take place by the end of this year.
Out of30 BOT projects, which are likely to be announced by the year-end, the company hopes to take on at least two key initiatives.
Chennai, Sept. 13
National Asphalt Products and Construction Company (NAPC), a Chennai-based infrastructure and contractual mining company, plans infusion of about Rs 120 crore of private equity to fund its expansion into coal mining, real estate and build, operate and transfer (BOT) roads and toll points.
The company plans to dilute about 20 per cent of its equity and is in talks with a few funds for this. The equity infusion is likely to take place by the end of this year, said Mr Varun Manian, Director, NAPC.
The company, which has been in this sector for the past 50 years, will bid for infrastructure projects, mainly roads and toll points, under the BOT scheme. He said that out of 30 BOT projects, which are likely to be announced by the year-end, the company hopes to take on, at least, two key initiatives.
The company has orders worth Rs 1,200 crore, he said.
Mr Manian, a business graduate from New York University, said that NAPC has roped in a research agency to undertake traffic management studies on these roads. The research agency would also undertake projections for at least five years, he said. This would give some idea about the kind of revenue that can be expected from tolls, he said.
Currently, NAPC has undertaken an Rs 75-crore road project in Dubai, the Al-awir road that is the highway to Oman and Hatta.
Besides the execution of World Bank funded highway projects, NAPC has also undertaken contracts for the National Highways Authority, airport and port authorities, public works departments and city corporations
Mr Manian said that when the Indian Army decided to manufacture T-72 tanks, it was on the lookout for contractors to erect stone tracks that could withstand the pounding of armoured tanks. NAPC bagged the contract for this project, he said.
Another specialised contract was for the Atomic Energy Department, where thousands sq m of roads was laid in the forests for the heavy water project.
NAPC is currently operational in over 18 mines and the next step would be to own mines and iron ore exports, Mr Manian said. He said that supplying to domestic market where demand is high would be another focus point.
NAPC has also signed up with a Brazilian footwear manufacturer to take up total project construction on a turnkey basis. He said the company would now be getting into residential complexes soon. NAPC is acquiring land on the IT corridor and work on the first project is likely to start in January.