Indore Dewas Tollways Ltd

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Indore Dewas Tollways Ltd was created to implement a project to expand to six lanes 45 Km of the Indore Dewas section road on NH-3 from km 577.50 to km 610.00 and km 0.00 to km 12.60 in the state of Madhya Pradesh, India. The National Highway Authority of India awarded the project under a 25-year DBOT concession on a BOT (Toll) basis to Indore Dewas Tollways Ltd, a joint venture of Gayatri Projects Limited and DLF Limited in March 2010. But by the time of financial closure, Gayatri Projects Limited reported to owned 100% of Indore Dewas Tollways Ltd. Indore Dewas Tollways Ltd won the project by offering to pay an annual premium of Rs 240 million (US$5.3 million), to NHAI. The net present value of those payments at 10% discount was US$52.9 miilion. Gayatri Projects has a right to collect toll on the existing four lane highway through its SPV. The road was expected to be commissioned in 2013. Indore Dewas Tollways Ltd estimated the project cost at INR6000 million (US$ 131.2 million) at financial closure. But the National Highway Authority quoted the project cost at INR3250 million. The project reached financial closure in November 2010 with a Rs4.5 billion 14-year term loan for Indore Dewas Tollways was signed via sole bookrunner and mandated lead SBI Capital Markets. Final allocations saw participants Punjab National Bank and Union Bank of India commit Rs1.5 billion each, while Punjab Sind Bank and State Bank of Hyderabad gave Rs1.0 billion and Rs500 million respectively.