Mukund G Sapre Executive Director, IL&FS Transportation Networks Ltd (ITNL)
The year 2015 has been productive and relatively successful for ITNL on the project execution front. And Sapre is set to actively support the company in fulfilling its set targets. He shares more on the landmark projects that are adding to the company´s growth.
Key achievements: During the year, our road portfolio touched 14,680 lane km spread over 31 projects with an operational portfolio of 9,439 lane km of highway from 20 road projects and foraying into other surface transportation sub-sectors like metro rail, city bus services and border check-posts. Many projects under construction, such as the 539-lane-km Sikar-Bikaner Expressway in Rajasthan, were completed. We have also been successful in achieving the tunnel breakthrough of the 9-km Chenani-Nashri Tunnelway in Jammu & Kashmir and have completed the 533-lane-km Moradabad Bareilly Expressway in Uttar Pradesh. Additionally, we have made 17 check-posts and two central control facilities in Madhya Pradesh awarded by MPRDCL operational. Another three projects - the Baleshwar-Kharagpur road project, Jorabat-Shillong road project and Thiruvananthapuram City Road Improvement Project - are nearing completion and we are awaiting declaration of COD from the client.
Status on the Rapid Metrorail Gurgaon South Ltd: This approximately 7-km metro link from Delhi Metro´s Sikanderpur Station to Sector 56 in Gurgaon was awarded by HUDA for a concession period of 98 years. To date, we have achieved a physical progress of 45 per cent and it is likely to be completed by December 2016.
Other contracts bagged in 2015: We have managed to emerge as a preferred bidder in a few projects. These include the Amravati-Chikli Road by NHAI on a DBFOT (toll) basis for a period of 19 years; the Fagne Mah-Guj Border Road by NHAI on a DBFOT (toll) basis for a period of 19 years; the Gujarat RoB from GRICL through a concession on BOT annuity basis for developing eight ROBs; and the Ranchi Ring Road (Section VII) by JARDCL on BOT annuity basis.
Raising Rs 750 crore via rights issue: The rights issue has been completed and money has been used to repay debt, thereby reducing debt levels. Given that the share price is at a substantial discount to its book value, the company thought that rather than making a fresh issue and forcing dilution of existing shareholders, it was prudent to mobilise capital through a rights issue, thereby enabling existing shareholders to maintain their holding.
Vision going forward: At present, we have 20 roads projects and three non-roads projects that are operational. We expect this to increase to 26 roads projects and four non-roads projects by the end of FY 2017.