IRB Trust secures major highway concession in Uttar Pradesh

IRB Infrastructure Developers Limited has disclosed an update from its associate, IRB Infrastructure Trust, regarding the TOT-17 Project. IRB Harihara Corridors Private Limited, the project SPV of the Trust, has executed a Concession Agreement with the National Highways Authority of India (NHAI).

This agreement is for a significant Tolling, Operation, Maintenance, and Transfer project covering sections of NH-28 (New NH-27) from km 15.400 to km 137.970, Ayodhya-Gorakhpur Section (Km. 136.759 to Km. 252.860), and Lucknow-Sultanpur Section of NH-731 from Km. 90.370 to km. 217.795. This totals 366.096 kilometers in Uttar Pradesh.

Under the terms, the Trust will pay an upfront Bid Concession Fee of INR 9,270 Crores to NHAI for a 20-year revenue-linked concession period. Annual tariff revisions will include a fixed 3% increase per annum plus 40% of the Wholesale Price Index (WPI), with tolling and operation & maintenance activities commencing from the appointed date.

This addition is expected to increase the Trust's asset portfolio by approximately 20%, reaching an estimated INR 65,000 Crore, thereby enhancing long-term revenue and cashflow generation visibility. IRB Infrastructure Developers Ltd will serve as the project manager for this venture.