IRB Infrastructure Developers achieves financial closure for Mumbai-Pune Expressway

IRB MP Expressway Private Limited, a special purpose vehicle of IRB Infrastructure Developers Limited, has achieved financial closure for its first TOT project, the Mumbai-Pune Expressway. IRB had been managing the tolling and operations of the expressway for 15 years until August 2019, following which the Maharashtra State Road Development Corporation (MSRDC) called for bids for a new tolling contract of 10 years and two months. IRB won the bid in February 2020. The project length is 205.4 km, comprising the expressway and a section of National Highway-48, the old Mumbai-Pune corridor. IRB is required to pay Rs 82.62 billion to the state agency for the deal, and the payment will be made in multiple tranches. The company tied up the funds required for the tolling contract from an SBI-led consortium that included the Union Bank of India, and made an upfront payment of Rs 65 billion as Tranche I payment to MSRDC.