IRB secures 10 years tolling contract for Mumbai-Pune Expressway

The country’s largest road construction company, IRB Infrastructure Developers, announced that it has received a contract to collect toll and operate Mumbai-Pune Expressway Project on Toll-Operate-Toll (Toll-Operate-Toll) model, on Tuesday after market hours.

The company in its press release said that it received LoA from MSRDC for road work of Mumbai-Pune expressway and an old highway connecting two cities. It has emerged as the preferred bidder for work relating to sub-concessionaire. The project would include tolling, operation, maintenance and transfer of two strategically important road connections in the state of Maharashtra. The work is slated to be executed on Yashwantrao Chavan Expressway (six-lane expressway for corridor between Kalamboli and Dehu Road) and Mumbai-Pune tranche of old highway from Shilphata to Nigadi.

As per the contract, the company would make an upfront payment of Rs 6,500 crore to MSRDC, followed by a staggered payment of Rs 850 crore each in one to three years and Rs 62 crore in four years, aggregating to Rs 8,262 crore for sub-concession period of ten years and two months.

The work order is the first project under TOT model introduced in 2016. The tolling is expected to start from March 1, 2020 on both road section of Mumbai-Pune corridor. Earlier also, IRB has managed this project for 15 years from 2004 to 2019. The company’s order book as on December 31, 2019 stood at Rs 6,800 crore.

Today, the stock of IRB Infra gained nearly four per cent in early trade and made an intraday high of Rs 102 on the BSE. At 11:39 a.m., the stock was trading at Rs 96.20 on BSE.