Chenani Nashri Tunnelway Limited (CTNL)

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Chenani Nashri Tunnelway Ltd (CNTL), a company wholly owned by IL&FS Transportation Networks Limited (ITNL), was created to undertake, a 12 km long tunnel, with a parallel escape tunnel and four laning of Chenani to Nashri Section of NH-1A from Km 89.00 to Km 130.00 (New Alignment) including the long tunnel (2 lane) in the state of Jammu & Kashmir. This tunnel would reduce the distance between Chenani and Nashri to 12 km from 41 km on existing route. The Project was the longest road tunnel project in India until 2010. The project was awarded under 20 year BOT (Annuity) concession including construction period. The National Highway Authority of India (NHAI) awarded the project to IL&FS Transportation Networks Ltd using the lowest annuity payment criteria. Chenani Nashri Tunnelway Ltd (CNTL) had a semiannual annuity of Rs 317.52 crore. IL&FS Transportation Networks Ltd was issued a Letter of Award dated May 03, 2010. The concession agreement was signed in June 2010. The total project cost was estimated to be Rs 37.20 billion (US$ 813.5 million). The project reached financial closure in November 2010. It was financed in a Debt Equity Ratio of 90:10 through debt aggregating to Rs. 3,348 Cr i.e. Rs. 2,976 Cr of Senior Debt and Rs. 372 Cr of Subordinate Debt and the balance as Promoter Contribution. Through an innovative financial structuring, the Loan repayment is completed in 14.75 years, including a bullet repayment at the end of the tenor. The project was scheduled to achieve commercial operations by Dec 2015. The facility has been syndicated on a project recourse basis.