Navayuga Udipi Tollway Pvt Ltd

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Navayuga Udupi Tollway Pvt Ltd was established to implement a project that entailed to expand to four lanes 90-km stretch between Kundapur and Surathkal (from km 283+300 to km 358+080) and Nanthoor and Talapady on on the Mumbai-Kochi section of NH-17, India. The project had two parts—a 15km Talapady – Nanthoor stretch and a 75km Suratkal to Kundapur stretch. The project would provide connectivity to Krishnapatham port. The project also include a section of three lane road over bridge (ROB). One was locate at Yekkur (a minor 31-metre bridge). Besides the Yekkur ROB, 3 minor bridges of varying lengths between Talapady and Nanthoor needed to be constructed along with 2 major bridges along the 15kms stretch, an 800-metre bridge at Nethravathi and a 70-metre bridge at Talapady. The National Highway Authority of India (NHAI) awarded the project to Navayuga Udipi Tollway Pvt Ltd, a consortium owned by Navayuga Engineering Co Ltd and Krishnapatnam Port Co Ltd, in January 2010. The project was awarded on Build Operate Transfer (BOT) Toll basis under the National Highway Development Project (NHDP) Phase III. The concession contract was signed in April 2010. The project cost was estimated to be INR6740 million (US$147.4 million) at the time of project award. Of this, the land acquisition cost plus shifting of utilities was at INRs 2.200 million and was to be assumed by NHAI. In addtion NHAI agree to pay INR 2210 million (US$48 million) to make the project financial viable. At the time of financial closure the project cost was estimated to be INR8000 million (US$174.9 million). Financial close was on 30 Sep 2010. Financing comprised Rs4.7 bn 14-year 8months term loan and Rs3.3bn equity. The debt was arranged by Axis Bank. The was contradiction on the project cost reported at the signature of the contract and financial closure.