Khandwa Agroh Pathways Private Limited

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On 28th July 2011, Madhya Pradesh Road Development Corporation (MPRDC) signed a 30-year concession (including construction period of 2 years) with a consortium of Prakash Asphaltings & Toll Highways (India) Limited and Agroh Infrastructure Developers Private Limited for the strengthening, improvement, two-laning,operation and maintenance, and tolling of 131.95kms of Khandwa-Dehtalai-Burhanpur section of State Highway-50 from km 0/500 (at Khandwa) to km 4.730 (at Burhanpur), in the state of Madhya Pradesh. Under the contract, the consortium was responsible for the design, construction, finance, operation and maintenance,strengthening and widening the existing carriageway to 2-lane road The scope included construction of new pavement, rehabilitation of existing pavement, construction and/or rehabilitation of major and minor bridges, culverts, road intersections,interchanges, drains, etc.The expansion project, part of the MPRDC Highway Development Program, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. The consortium of Prakash Asphaltings & Toll Highways (India) Limited and Agroh Infrastructure Developers Private Limited, established Khandwa Agroh Pathways Private Limited on 6th January 2012, a special purpose vehicle, to implement the project. The SPV won the tender through international competitive bidding, conducted by MPRDC, by requesting for the lowest upfront subsidy (viablity gap funding) of US$ 13.3mn (INR 663.6mn @50 INR/USD). Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling during the term of concession. The project attained financial closure on 20th April 2012. The grant/debt/equity ratio of the project was 26/52/22. The estimated capital cost of the project at the time of financial closure was US$ 59mn (INR 2952.2mn @50 INR/USD). Apart from viability gap funding (grant) of INR 663.6mn (Central Government - INR 454.1mn, and Govt of Madhya Pradesh - INR 209.5mn), financing comprised of 15-year term loan of US$ 30.5mn (INR 1524.2mn) and sponsor equity of US$ 15.3mn (INR 764.4mn).The term loan had a grace period of 2 years and a repayment schedule of 156 monthly installments. The debt was arranged by Dena Bank. Construction on the project began in April 2012 (Appointed Date) and was expected to be completed by April 2014. 90% of total land requirement had been completed at the time of collection of this information.