Jabalpur-Narsinghpur-Piparia Road

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JNP Road Infrastructure Pvt. Ltd. was awarded a 15 year build-operate-transfer (BOT) contract for the 140 km Jabalpur-Narsinghpur-Piparia Road by Madhya Pradesh Road Development Corporation Limited (MPRDC) in January 2003. MPRDC is a wholly owned Madhya Pradesh (MP) state government company responsible for the construction and rehabilitation of MP state roads. Under the contract, all the investment was made by JNP Road Infrastructure Pvt. Ltd. in return for the right to collect tolls during the term of the contract. This BOT contract was in response to an urgent need to strengthen and upgrade the region’s roads due to a considerable increase in traffic and commercial activities. JNP Road Infrastructure Pvt. Ltd. won the competitive tender conducted by MPRDC in December 2002 by bidding the lowest subsidy/ grant amount of US$ 9.8 million. Maharashtra based Kotecha Group created JNP Road Infrastructure Pvt. Ltd. to implement this project. The total cost of the project was estimated at US$ 17.32 million. The project was financed through a combination of sponsor equity (US$ 2.52 million), loans (US$ 5 million) and a grant from the government in the amount of US$ 9.8 million. IL&FS Investsmart Limited, the sole arranger of the loan, syndicated the loan requirement with Punjab National Bank, Union Bank of India and SIDBI. Construction of the project was expected to be completed in early part of 2006.