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Venkatesh Ganesh Reliance Infrastructure’s sale of Delhi Agra (DA) Toll Road to Singapore-based Cube Highways and Infrastructure III will close by August-end.
“This transaction will close by end of August and the company is looking to reduce its debt by 25 per cent to less than ₹5,000 crore,” said sources aware of the development. When contacted a Reliance Infrastructure spokesperson said confirmed that the transaction. Cube Highways and Infrastructure III Pte Ltd is a Singapore-based company formed by global infrastructure fund of I Squared Capital and a wholly-owned subsidiary of the Abu Dhabi Investment Authority.
This development comes in the backdrop of Reliance Infrastructure looking to exit roads-related business. Its Special Purpose Vehicle DA Toll Road Private Limited, which operates the Delhi-Agra toll road was sold off in March. “By doing this Reliance Infrastructure will reduce debt by 25 per cent to less than ₹5,000 crore,” added the Reliance spokesperson.
Additionally, Reliance Infrastructure will receive ₹3,600 crore and total equity of up to ₹1,700 crore from this transaction. It is also learnt that Reliance Infrastructure has applied for a Commercial Operations Date (COD) with NHAI. In a public-private partnership, COD is required for the transaction to go through.
₹7,000-cr EPC contract
In a related development, Reliance Infrastructure has bagged a ₹7,000-crore EPC contract from Maharashtra State Road Development Corporation (MSRDC), for the Versova-Bandra Sea Link Project (VBSL) in Mumbai.
With the VBSL project, Mumbaikars can cut down their commute times from 90 to 10 minutes, in addition to saving on fuel costs and reducing the carbon footprint.
“Reliance Infrastructure is fully geared to deliver the project in 60 months from the appointed date of June 24, as per the contract,” the company said in a filing to the exchanges.
VBSL is a project of 17.17 km, which is three times the length of the Bandra-Worli Sea Link.
Further, for the project, Reliance Infrastructure have already completed the works related to soil investigation, in partnership with Fugro Ltd, and engineering design, in partnership with Dar Al Handasah. MSRDC is expected to finalise the location of casting yard for the work to start on the project.
Punit Garg, ED and CEO, Reliance Infrastructure, said: “This project will further propel Reliance Infrastructure as a premier E&C company in India. Our partnership with Astaldi S.p.A, the third biggest construction player in the world in bridges, will help us create a world-class mega infrastructure project for Mumbai.”
Reliance Infrastructure shares went up 17.44 per cent and closed at ₹60.95.
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