Chetak Mitra Tollways Private Limited

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On 12th December 2011, the Government of Rajasthan awarded a concession of 15-years 5-months and 2-days (including 1 year construction period) with a consortium of Chetak Enterprises Limited and M/s Hanuman Singh Mehta for the strengthening, improvement, 4-laning, operation and maintenance, and tolling of 100kms of Rohat-Jalore section of road comprising SH-64 (0/000 to 82/000) and SH-16 (165/500 to 183/500), in the state of Rajasthan. Under the contract, the consortium was responsible for the design, construction, finance, operation and maintenance,strengthening and widening the existing 2-lane carriageway of Rohat-Jalore section of SH64 and SH16 to four lane standard with paved shoulders.The scope will include construction of new pavement, rehabilitation of existing pavement, construction and/or rehabilitation of major and minor bridges, culverts,road intersections,interchanges, drains, traffic signages, traffic safety measures, etc. This road upgradation was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. The consortium of Chetak Enterprises Limited (CEL-51.4%) and M/s Hanuman Singh Mehta (HSM-48.6%) established Chetak Mitra Tollways Private Limited (CMTPL), a special purpose vehicle, to implement the project. The SPV won the tender through domestic competitive bidding, conducted by PWD Rajasthan, by quoting the lowest concession period of 15-years 5-months and 2 days. Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling during the term of concession. Chetak Enterprises Limited would execute the EPC for this project. The concession agreement for the project was signed on 17th January 2012. The project had attained financial closure. The debt equity ratio of the project was 68:32. The estimated capital cost of the project at the time of financial closure was US$ 17.75mn (INR 887.5 mn @ 50 INR/USD). Financing comprised term loan of US$ 12mn (INR 600mn) and equity of US$ 5.75mn (INR 287.5mn). Other details of financing were not available at the time of collection of this information. The construction of project started in May 2012 (Appointed Date) and was expected to be operational by April 2013.