Brindavan Infrastructure Co. Pvt. Ltd.

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Karnataka Road Development Corporation Ltd (KRDCL), a Karnataka state government undertaking, awarded a eight year concession contract to Brindavan Infrastructure Co. Pvt. Ltd. (BICPL) in October 2003 to widen and upgrade the 62 km stretch of Karnataka state highway 17 (SH-17) between Bangalore and Maddur. This concession contract was in response to an urgent need to widen and upgrade the region’s roads due to a significant increase in traffic and commercial activities. Under the contract, BICPL was compensated for the capital and operating costs including returns by way of a fixed semi-annual payment (annuity) from KRDCL during the concession term. Under the annuity scheme, the private operator does not collect tolls from the users of the facility. BICPL won the competitive tender conducted by KRDCL by quoting the lowest annuity amount of US$ 6.6 million. BICPL was a joint venture of private Indian firms - Nagarjuna Construction Company Limited, Maytas Infra Pvt. Ltd., and KMC Constructions Ltd. There was no information on the exact shareholding structure of BICPL. The total cost of the project was estimated at US$ 61.8 million. The project reached financial closure in April 2004. The project raised US$ 40.8 million in senior debt from IDFC (US$ 29.8 million) and Corporation Bank (US$ 11 million). Construction work on the project began in December 2003 and was completed in 2005. Karina advised to enter Annuity amount as Govt. cash support