Adani Enterprises Ltd (AEL) on Thursday informed that three of its road construction subsidiaries have achieved financial closure for the upcoming Ganga Expressway in Uttar Pradesh, said to be India’s longest expressway to be implemented on Design, Build, Finance, Operate and Transfer (DBFOT) toll basis.
In a regulatory filing, the company stated that Budaun Hardoi Road Pvt Ltd, Hardoi Unnao Road Pvt Ltd and Unnao Prayagraj Road Pvt Ltd, wholly-owned subsidiaries of Adani Enterprises, had achieved financial closure for the access-controlled six-lane greenfield Ganga Expressway project.
The 594-km Expressway will connect Meerut and Prayagraj, while AEL will build 464 km from Budaun to Prayagraj, which comprises 80 per cent of the project, it said.
KP Maheshwari, CEO, Road Business, Adani Enterprises Ltd, said, “The State Bank of India has underwritten the entire debt requirement of ₹10,238 crore for the projects. With this, we have moved a step closer to providing our country and the state of Uttar Pradesh with another landmark infrastructure”
The company has committed an equity infusion of ₹6,826 crore and Viable Gap Funding (VGF) of ₹5,996 crore. The project concession period is for 30 years with a traffic link extension provision of six years, including three years of construction.
Vast projects
AEL’s road portfolio has grown to 18 projects with more than 6,400 lane kms and an asset value exceeding ₹44,000 crore spread over ten States in India — Uttar Pradesh, Chhattisgarh, Telangana, Andhra Pradesh, Madhya Pradesh, Kerala, Gujarat, West Bengal and Odisha.
The portfolio has a mix of HAM (Hybrid Annuity Mode), TOT (Toll-Operate-Transfer) and BOT (Build-Operate-Transfer) type assets. Adani Enterprises shares traded lower at ₹3,541 on the National Stock Exchange Thursday.