Welspun Enterprises Ltd’s (WEL) subsidiary, Welspun Infrafacility, will acquire a Build-Operate-Transfer (BOT) toll project from Essel group’s company Mukarba Chowk – Panipat Toll Roads Limited (MCPTRL). However, it is subjected to NHAI’s final approval.
While the original cost of the project was estimated to be Rs 2,122 crore, it is estimated that Rs 1,593 crore is the balance to be incurred to complete the project. MCPTRL is about 31 per cent complete. It is expected to be fully completed by June 2021.
Commenting on these developments, B K Goenka, Chairman, Welspun Group said, “We are focused on profitable growth of our infrastructure portfolio and this transaction is another step in that direction. We believe that this addition to our existing road portfolio will create sustainable value for our shareholders and improve the overall returns for the Company.”
Welspun Infrafacility has made this deal by way of Harmonious Substitution which was recommended by the project lenders and subsequently approved by NHAI.
The length of this project is 71.1 kms will operate between Mukarba Chowk - Panipat Highway (NH-44). As per the concession agreement, the scheduled concession end date is October 2033, extendable up to 3.4 years based on actual average traffic in year 2025. The current toll revenue for only Haryana section is about Rs 200 crore per annum. Upon achieving Commercial Operation Date for both Haryana and Delhi section, the company expects to collect a toll of Rs 300 crore per annum.