Badarpur Elevated Highway Project

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On 20th September 2008, the National Highway Authority of India (NHAI) signed a 20 year concession (including construction period of 24 months) with India’s Hindustan Construction Company Limited (HCC) to develop a 4.4km-long six-lane elevated highway on National Highway 2 (NH2) at the border of Delhi and Haryana. Under the contract, HCC was responsible for the design, finance, operation and maintenance of the six-lane elevated section. Six new elevated lanes were to be built in the current two-lane Agra-Delhi highway. It was expected to provide a much desired relief to inter-state movement on NH2. The highway was designed to provide a smooth and non-stop drive to motorists in Delhi and Faridabad, Haryana. It was to start close to NTPC near Badarpur in Delhi and end at Sector 37 in Faridabad. It was to provide a smooth drive over five important traffic junctions including NTPC, Mehrauli, Jaitpur, Sarai Bypass and Sector 37 junction. HCC established Badarpur Faridabad Tollway Limited, a special purpose vehicle, to implement the project. HCC won the tender through competitive bidding, conducted by NHAI, by requesting the lowest fixed subsidy. The details of bidding were not available at the time of collection of this information. Under the contract, Badarpur Faridabad Tollway Limited was to recover the capital costs and operating costs including returns through tolling during the term of concession. The capital cost of the project was estimated at US$ 70.2 million (INR 3400 million @48.41 INR/USD) at the time of bidding. However the project cost at the time of financial closure was revised to US$ 118.1 million (INR 5717 million @ 48.41 INR/USD). The discrepancy was the result of lower estimates by NHAI for an elevated highway. The project attained financial closure in March 2009. The Debt/Equity ratio was 70:30. Financing comprised a US$ 82.6 million (INR 4000 mn @48.41 INR/USD)- 14years 9 months credit facility and US$ 35.5 million (INR 1717 mn @48.41 INR/USD) equity. Axis Bank was the sole lead arranger. Construction on the project stretch began in September 2008 and was expected to be completed by September 2010. The investment figure currently is based on limited information of the results of the bid (subsidy from the government) by the private party. Will be updated once the same is available. Revenue Sources as well as Govt Support Type will hence change too.