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New hybrid model likely to fund highway projects

November 22, 2006

NEW DELHI, NOV 22: The Centre is likely to stop financing future highway projects on a build-operate-transfer (BOT) annuity basis because the entire traffic risk falls on National Highways Authority of India (NHAI) or the government that collects the toll.

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Written by ITW Author · Filed Under Highway, NHAI, Projects 

Nine road projects cleared by PPP appraisal committee

November 1, 2006

NEW DELHI, NOV 1: Road sector projects seem to be on the fast track with the public private partnership appraisal committee (PPP-AC) clearing nine road projects in its second meeting on Wednesday.

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Written by ITW Author · Filed Under NHAI, NHDP, Projects 

Financial closure on Rs 765cr Bangalore Expressway achieved

November 1, 2006

The consortium of Soma Enterprise Ltd., a leading infrastructure developer with Nagarjuna Construction Co. and Maytas Infra Pvt. Ltd., today announced that financial closure on the Rs.765 crore Elevated Toll Expressway Project on Bangalore – Hosur Section of NH-7 (from Km 9.5 to Km 18.5) on BOT basis has been achieved. Out of the Rs.765 crore, Rs.600 crore of debt has been raised from a consortium of banks, led by Canara Bank. The consortium will operate the expressway for a period of 20 years. The special purpose vehicle formed for this project is Bangalore Elevated Tollway Ltd.

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Written by ITW Author · Filed Under Investment and Finance, NHAI 

Infrastructure companies — Stack up with discretion

October 14, 2006

Driven by infrastructure spending, the demand side for construction companies remains robust. The key to success will lie in their ability to ramp up resources and capitalise on order flow.

Compound Annual Growth over 3 Years (%)
Indicative OPM across segments (%)


Click on the image to enlarge

Infrastructure has been the new market mantra the past two years. While private equity investors showed keen interest in infrastructure/construction companies, a number of mutual funds also jumped on to this booming bandwagon, investing a chunk of their assets in the sector. An annualised revenue growth of 30-40 per cent over the past three years and an average order size of three-four times the revenues also seem to justify this newfound enthusiasm.

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Written by ITW Author · Filed Under BOT, Infrastructure, NHAI