IRB Infrastructure Trust Secures TOT-18 Project with Rs. 3,087 Crore Bid
Filing Summary
IRB Infrastructure Trust, an associate of IRB Infrastructure Developers Ltd, has received a Letter of Award from the National Highways Authority of India for the TOT-18 project. This involves the Tolling, Operation, Maintenance, and Transfer of the Chandikhole-Bhadrak Section of NH-16 in Odisha. The project spans approximately 74.5 km, with an upfront Bid Concession Fee of Rs. 3,087 Crores for a 20-year concession period. IRB Infrastructure Developers Ltd will manage the project. This marks the company’s entry into Odisha, expanding its footprint in India’s highway infrastructure sector.
IRB Infrastructure Trust, associated with IRB Infrastructure Developers Ltd, has been awarded the TOT-18 project by the National Highways Authority of India (NHAI). The project involves the Tolling, Operation, Maintenance, and Transfer (TOT) of the Chandikhole-Bhadrak Section of NH-16 in Odisha, covering a distance from Km 62+000 to Km 136+500. This development follows the Trust’s selection as the preferred bidder, culminating in the receipt of the Letter of Award (LoA) from NHAI.
The financial terms of the project include an upfront Bid Concession Fee of Rs. 3,087 Crores, which the Trust will pay to NHAI. The concession period is set for 20 years, during which the Trust will manage tolling operations and maintenance activities. The project also includes an annual tariff revision, comprising a fixed 3% increase per annum plus 40% of the Wholesale Price Index (WPI). These financial arrangements are designed to support the long-term viability and revenue generation of the project.
Operationally, the project encompasses the management of a 74.5 km stretch of the NH-16, which is part of the Golden Quadrilateral Project. The scope includes comprehensive tolling operations and maintenance activities, which will commence from the appointed date. IRB Infrastructure Developers Ltd will serve as the Project Manager, overseeing the execution and operational aspects of the project. This role involves ensuring compliance with the terms of the concession agreement and maintaining the infrastructure to the standards set by NHAI.
The timeline for the project includes several key milestones, beginning with the execution of the concession agreement and achieving financial closure within the stipulated timeframe. The commencement of tolling and operational activities will follow the appointed date, marking the start of the 20-year concession period. These phases are critical to the project’s success and are closely monitored to ensure timely implementation.
The entities involved in this project include IRB Infrastructure Trust as the concessionaire and IRB Infrastructure Developers Ltd as the Project Manager. The National Highways Authority of India is the awarding body, responsible for overseeing the project’s compliance with national infrastructure standards. Each party has distinct roles and responsibilities, contributing to the project’s overall execution and management.
This project marks IRB Infrastructure Developers Ltd’s entry into Odisha, expanding its presence in the Indian highway infrastructure sector. The addition of the TOT-18 project enhances the company’s portfolio, which includes a significant share in the Golden Quadrilateral Project. This strategic move aligns with the company’s objective to increase its market share in the TOT segment and expand its operational footprint across India.
IRB Infrastructure Developers Ltd is a leading player in India’s road and highway infrastructure sector. The company focuses on developing, operating, and maintaining toll road projects across the country. With a robust portfolio of projects, IRB continues to expand its presence and enhance its capabilities in the infrastructure domain, contributing to the development of India’s transportation network.