Reliance One Sealink Pvt Ltd, a special purpose vehicle floated by Reliance Infra, is close to securing financial closure for its Mumbai sealink project.

According to sources close to the development, ICICI Bank has given “in-principle approval” for a loan of Rs 2,000-crore - comprising $250-million (around Rs 1,125 crore) ECB and the rest (Rs 875 crore) by way of rupee term loan.

Sources also said that the bank “has not so far decided on downselling this to any other bank”.

Though the company officials refused to comment on the development, sources said after completing the due appraisal process, Reliance One has submitted financial documents to MSRDC (Maharashtra State Road Development Corporation) and “based on the consent of MSRDC, the company shall proceed for formal financial closure”.

total cost

The total cost of the Mumbai sealink project is pegged at Rs 4,550 crore. Of this, Rs 1,634 crore will be paid to the State Government for acquiring the 5.6-km Bandra-Worli Sealink (for a period of 40 years) and Rs 2,916 crore for the new link between Worli and Haji Ali (a 7.2-km stretch).

The Rs 4,550-crore project is to be funded through a debt component of Rs 2,000 crore (which is to be secured from ICICI Bank), promoters' equity of Rs 1,158 crore and the remaining Rs 1,392 crore will be through viability gap funding (a Government grant for the project).

According to the construction agreement, Reliance Infra will have to build the new sea link in 42 months.

The company is said to have completed all design related issues and is expected to start construction “latest by July 2011”. It is also learnt that the technical partner for the project is Hyundai.

While the existing traffic on the Bandra-Worli sealink is 52,000 vehicles a day (toll fee is Rs 65 for one way – effective April 1 - and to be revised every three years), and the Government predicts this to go up to 1 lakh vehicles.

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