Welspun Enterprises to acquire BOT toll project from Essel Group
The acquisition, through a subsidiary Welspun Infrafacility, is being done by way of harmonious substitution
Welspun Enterprises, a part of Welspun Group, plans to acquire a build operate transfer (BOT) toll project from Essel Group’s company Mukarba Chowk-Panipat Toll Roads (MCPTRL), subject to the National Highways Authority of India (NHAI) final approval.
The acquisition, through a subsidiary Welspun Infrafacility, is being done by way of harmonious substitution which was recommended by the project lenders and subsequently approved by NHAI.
MCPTRL has completed around 31% of 71.1 km long Mukarba Chowk-Panipat Highway (NH-44) project.
The original total project cost was estimated to be Rs 2,122 crore out of which Rs 1,593 crore is the balance to be incurred to complete the project.
The company expects to complete the project by June 2021.
As per the concession agreement, scheduled concession end date is October 2033, extendable up to 3.4 years based on actual average traffic in year 2025. The present toll revenue for only Haryana section is around Rs 200 crore per annum.
Upon achieving COD for both Haryana and Delhi section, the company expects to collect toll of Rs 300 crore per annum.