Larsen & Toubro Ltd. said on Wednesday that its subsidiary L&T Infrastructure Development Projects Ltd. (L&TIDPL) has signed a Concession Agreement worth Rs 26bn with the NHAI.
The agreement with NHAI is for the four-laning of a 244-km stretch on the NH 14 between Beawar and Pindwara in Rajasthan.
The project will be undertaken on BOT DBFO (design, built, finance and operate) basis, with a concession period of 23 years.
The estimated project cost is Rs 26bn, and the project is scheduled to be completed within a period of 30 months.
The Concessionaire (L&T BPP Tollway Pvt. Ltd - a SPV of L&TIDPL) is entitled to collect toll from the users of the highway during the concession period on completion of the four-laning of the road.
The project corridor is one of the main evacuation routes for traffic from Kandla and Mundra ports, destined to hinterlands spread out in Northern India, extending to Rajasthan, Haryana, Delhi, Punjab and beyond.
The project corridor falls within the proposed Delhi-Mumbai Industrial Corridor (DMIC) and the four-laning of the 244 km stretch of NH-14 within this industrial corridor is expected to accelerate the development and growth prospects in this region.
With this project, L&T currently has 16 projects in its BOT Roads Portfolio. Out of this, 7 are presently in operation phase, 8 in construction phase.
This project is entering the development phase, thus translating into a length of 6700 lane km and a total length of 1461 km, and a total project book size of Rs 158bn.
