• Adani Enterprises secures funds to build Ganga Expressway at Rs 23,000 cr

    Business
    Adani Enterprises secures funds to build Ganga Expressway at Rs 23,000 cr

    Four toll highways in Gujarat and Andhra Pradesh were recently purchased by the company for Rs 3,110 crore from Macquarie Asia Infrastructure Fund.

    Digital Desk: Adani Enterprises (AEL), which will construct a portion of the Meerut-Prayagraj Ganga Expressway, announced on Thursday that it had secured funding for the project nine months after winning the contract.

    The company would inject Rs 6,826 crore in new capital and has secured loans totaling Rs 10,238 crore. The company submitted the lowest proposal of Rs 5,996 crore in viable gap finance (VGF) for the 464-km stretch of the expressway. The project will cost a total of Rs 23,060 crore to complete.

    "The State Bank of India has guaranteed the entire INR 10,238 billion debt required for the Ganga Expressway Projects" (BHRPL, HURPL and UPRPL). With this SBI credit, we are one step closer to giving our nation and the state of UP another iconic infrastructure, said to K P Maheshwari, CEO of AEL's road business.

    Budaun Hardoi Road Private Ltd (BHRPL), Hardoi Unnao Road Private Ltd (HURPL), and Unnao Prayagraj Road Private Ltd (UPRPL) are the three special purpose vehicles (SPV) that AEL established for the project. Together, these three portions make up 80% of the 594 km expressway.

    The projects were given to AEL on a design-build-finance-operate-transfer (DBFOT) basis in December of last year, with a 30-year concession period. According to reports, the project's initial budget was Rs 17,085 crore when it was first proposed by the government of Uttar Pradesh.

    One of India's most expensive road projects, the Ganga Expressway will have access control, six lanes (with the option of expanding to eight), and six lanes. It consists of four stretches, of which IRB Infrastructure is building a 129-km stretch and AEL is building three.

    18 road projects totaling more than 6,400 lane km and more than Rs 44,000 crore make up AEL's portfolio. Uttar Pradesh, Chhattisgarh, Telangana, Andhra Pradesh, Madhya Pradesh, Kerala, Gujarat, West Bengal, and Odisha are among the 10 states that make up the region.

    Four toll highways in Gujarat and Andhra Pradesh were recently purchased by the company for Rs 3,110 crore from Macquarie Asia Infrastructure Fund.