Ramky Elsamex Hyderabad Ring Road Limited (REH)

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Ramky Elsamex Hyderabad Ring Road Ltd. (REHRL) is a Special Purpose Vehicle (SPV) incorporated on July 18, 2007 to design, construct, develop, finance, operate and maintain eight-lane access-controlled expressway under Phase II A program in the Hyderabad city for the section from Tukkuguda (Km 121.00) to Shamshabad (Km 133.63), a stretch of 12.63 km, under Build, Operate & Transfer (BOT) Annuity Basis. The total length was 152 km. REHRL has been promoted by the Hyderabad-based Ramky Infrastructure Ltd. (Ramky) and Elsamex SA, a Spanish engineering and construction company. The consortium quoted lowest annuity of Rs.31.50 crore (payable semi-annually) with a grant of Rs.66.50 crore from Hyderabad Urban Development Authority (HUDA). The project has been awarded under annuity scheme by HUDA, whereby HUDA would pay fixed annuity amounts of Rs.31.50 crore semi-annually after commissioning of the project. This eliminates the traffic and revenue risk for the operator. The letter of intent was issued by HUDA and the Concession Agreement (CA) was signed on August 18, 2007. The Concession is for a period of 15 years, including a 30-month implementation period. The commencement date for the project was November 27, 2007 while the Commercial Operation Date (COD) was November 2009. The end of the concession period was set on October 2022. The sponsor were Ramky Group (74%) and Elsamex SA(26%), a Spanish engineering and construction company. The latter one was acquired by by IL&FS Transportation Networks Limited (ITNL). ITNL, promoted by IL&FS Total project cost was INR 3,994 million (US$97 million). The project was financed with Senior debt (INR 2,629 million), sub-debt (INR 250 million), equity (INR 450 million), and grant (INR 665 million).