IL&FS Transportation Networks today said that its subsidiary has signed a concession agreement with the Jharkhand Government for the development of six-laning of Ranchi Ring Road at an estimated cost of Rs 587.60 crore.
“The concession agreement for development of six-laning of Ranchi Ring Road, section VII from Kathitanr to Karma comprising 23.575 km, has been signed by Jharkhand Infrastructure Implementation Co, a subsidiary of the company, with the Jharkhand Government on a build-operate-transfer (BOT) basis on August 7, 2015,” the company said in a BSE filing.
It further said: “The estimated cost of the project is Rs 587.60 crore. The company shall receive annuity of Rs 111.64 crore per annum upon completion of the project.”
IL&FS Transportation Networks said that the project is on an annuity basis with a concession period of 17.5 years, including construction period of 2.5 years.
IL&FS Transportation Networks stock was trading at Rs 130.75, down 7.47 per cent, on the BSE.