L&T Infrastructure Development Projects Ltd is likely to exit from two Maharashtra road projects, due to financial issues. The projects—four laning of Amravati-Jalgaon and Jalgaon-Gujarat / Maharashtra border—were awarded to the company by NHAI in June 2012 and achieved financial closure, funded by an ICICI Bank-led consortium in December 2012.
The total project cost was estimated to Rs.2537.81 crore for the Amravati-Jalgaon stretch comprising 275.25 km and Rs.1968.37 crore for the Jalgaon-Gujarat/Maharashtra border stretch comprising 208.75 km (from 441.300 km to 649 km). Both are part of the East-West connector, linking hubs of economic activity in Gujarat and Maharashtra in the west to the mineral-rich states of Odisha and Chhattisgarh in the eastern part of the country.
The special purpose vehicle formed—L&T East-West Tollway Ltd and L&T Great Eastern Highway Ltd—signed the concession agreements with NHAI for the development of the projects on NH-6. The two stretches are amongst the longest projects in the country bid out on DBFOT basis. The projects were bid out among stiff competition comprising of 12 bidders for the Amravati-Jalgaon stretch and 17 bidders for the Jalgaon-Gujarat/Maharashtra border stretch.
The project scope involves design, engineer, fund, construct, operate and maintain the road stretch for 19 years and 20 years, including the construction period of 30 months. It also includes construction of other facilities like bypasses, flyovers, underpasses, bridges, etc.
The company has been requested by NHAI to hold its decision on exiting from the projects till the general elections results on May 16.