L&T achieves financial closure for its Maha road projects

10 Dec 2012 CW Team

For two of its road projects in Maharashtra, L&T Infrastructure Development Projects (L&T IDPL), a subsidiary of Larsen & Toubro Ltd, and one of the pioneers in infrastructure development in India, has achieved financial closure on November 30.

The projects will be funded by an ICICI Bank-led consortium and the turnkey 'Engineering Procurement Construction (EPC)' contracts. The projects involve development (four laning) of contiguous stretches on NH-6 - Amravati to Jalgaon and Jalgaon to the Gujarat / Maharashtra border.

The length of these stretches on NH-6 are approximately 275 km and 209 km respectively, with the concession period for the projects being 19 years and 20 years respectively, including the construction period of 2.5 years. These are among the longest road projects in the country, bid out on Design, Build, Finance, Operate, Transfer (DBFOT) basis.

NHAI's estimate of the project costs are Rs 2,537.81 crore for the Amravati-Jalgaon stretch and Rs 1,968.37 crore for the Jalgaon to Gujarat / Maharashtra border stretch. Both are part of the East-West connector, linking hubs of economic activity in Gujarat and Maharashtra to the mineral-rich states of Orissa and Chattisgarh.

L&T IDPL has one of the largest project portfolios in the roads sector in India comprising approximately 9,200 lane km with a project cost of Rs 22,000 crore. L&T IDPL's portfolio of road projects includes some of the most economically significant and high-traffic corridors connecting important industrial towns in India.

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