Bangalore expressway mandate for ICICI
(Wednesday, February 16, 2000)
K Giriprakash in Banglore
ICICI has won the mandate to be the lead financial institution and arranger for the Rs 4,000 crore ($870 million) Bangalore-Mysore Expressway Corridor even as LIC, GIC, UTI and the Bank of India had expressed interest in picking up a stake in the project.
According to sources in Nandi Infrastructure Corridor Enterprise (NICE), a presentation was made during the first week of January to representatives of various financial institutions who also made a visit to the site.
Sources said representatives from IDFC, ICICI, IDBI, Hudco, LIC, GIC and UTI and the Bank of India attended the presentation. At present, a due diligence was being carried out and a pre-appraisal of the project would be completed by March 31.
The project is based on a 1:2 debt equity ratio. To avoid foreign exchange fluctuations, the amount will be raised only in Indian rupees. The promoters are also planning to float a public issue once the project is fully implemented.
The promoters have already structured a unique toll concession plan for the project which is expected to have with an internal rate of return of 20 per cent to 25 per cent. The toll rate will be based on 'pay-as-you-use' concept. Normally for expressway projects, a minimum fare is fixed for a certain length of expressway and the users have to pay that amount even if they exit before completing the distance.
However, in the case of the Bangalore-Mysore expressway corridor, the promoters will provide with collection centres at each exit point to make it easier for users to pay the fare only for the distance they have travelled.
As per the toll fare structure, trucks will be charged Rs 1.75 per km, bus will be charged Rs 2.70 per km, cars will be charged Re 1 per km and LCVs, Rs 1.05 per km.
The project consists of an outer peripheral road, a 121-km of expressway, five self-sustaining townships which can house 1 lakh (100 K) residents in each township, 400 MW of power generating facility, telecommunication and water supply system, seweage treatment facility, tourism, theme parks, amusement and recreational facilities.
The project promoters are the Kalyani Group, VHB International Ltd and SAB International Ltd. VHB International Ltd will be the lead engineers for the corridor project.
business-standard.com |
