DS Toll Road Limited

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The National Highways Authority of India (NHAI) awarded a 20 year concession to India’s Reliance ADA Group for the upgrade, operation and maintenance of the 53 km stretch on National Highway 7 (NH-7) between Dindigul and Samyanallur in Tamil Nadu State. The concession involved expansion of the existing two lane stretch to four lane road with paved shoulders; and construction of nearly 17 km of service roads, two bypasses (Kodai road and Vadipatti), 30 minor bridges, three flyovers, two rail overbridges, eight underpasses and 14 bus stops. The concession term included a construction period of 30 months. This road expansion, part of the North-South Corridor under National Highways Development Project – Phase II, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. Reliance ADA Group established DS Toll Road Limited (DSTRL), a wholly owned special purpose company, to implement this project. The concession agreement between NHAI and DSTRL was signed in Jan 2006. Reliance ADA Group won the project through an international competitive tender conducted by NHAI by requesting the lowest grant of US$ 6.8 million. Under the agreement, DSTRL was compensated for the capital and operating costs including returns from toll collections during the concession period. The total cost of the project was estimated at US$ 62.6 million. The project reached financial closure in October 2006. The loan, arranged by SBI Capital, was raised in the local rupee market and had a tenure of 16 years. Construction began in July 2006 and was expected to be completed by December 2008. None None