Welspun Enterprises Ltd, a part of Welspun Group, announced that it has plans to acquire a toll road project under the build-operate-transfer (BOT) model from the Essel Group.
Welspun Enterprises said in a stock-exchange filing that the project – operated by Mukarba Chowk-Panipat Toll Roads Ltd (MCPTRL) – is being acquired through the harmonious substitution route by the firm’s subsidiary, Welspun Infrafacility Pvt Ltd.
The harmonious substitution route allows for the substitution of an existing concessionaire or a selected bidder/consortium member of a special purpose vehicle. It is among the exit policies notified by the National Highways Authority of India (NHAI) to help projects facing financial stresses or breaches of their concession agreement.
“We believe that this addition to our existing road portfolio will create sustainable value for our shareholders and improve the overall returns for the Company,” BK Goenka, chairman at Welspun Group, said.
All existing lenders to the project have agreed to continue financing it, Welspun said, adding that it expects to complete the project by June 2021.
The firm expects to collect around Rs 300 crore per annum after it achieves commercial operational dates for both sections of the project.
The company says it has a portfolio of Rs 8,500 crore of road projects under the hybrid annuity model. It says it has also developed and operated over 500 kilometers of BOT toll road projects.
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