Shimla Bybass of NH-22

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The project involves the 4-laning of Shimla Bybass of NH-22 in the state of Himachal Pradesh. The total length of the section of 27.5 km. Promoter of the project is Chetak Enterprises Ltd. The concession contract was awarded by National Highway Authority of India to the sponsor following a competitive bidding process based on the lowest cost of construction and operation. This project falls under the Hybrid Annuity mode, NHDP-IV. Under the Concession Agreement, construction of the Project is to be completed within 2.5 years from the Appointed Date and is to be maintained for 15 years thereafter, post which it will be transferred to NHAI. Hence total concessional period is nearly 18 years. The sponsor will recoup its investment not by collecting toll fees, but by receiving fixed and variable annual payments from NHAI. Total investment cost stands at Rs 1480 crore ($232.32 million). As a HAM project, the means of financing are as follows: NHAI will provide Rs 592 ($92.93 million or 40%) as capital subsidy for the construction, while the sponsor will arrange the remaining funds as debt and equity in 47:13 ratio ($109.25 million and $13.14 million , respectively). Financial close was achieved in September 2017, but appointed date was declared in January 2018. CARE ratings (Factiva)