Wednesday, October 26, 2005

GMR to pump Rs 1500-1700cr for expansion, may float IPO


Infrastructure company GMR Group is planning to invest in Rs 1,500-1,700 crore (Rs 15-17 billion) over the next three years to undertake new projects and initiatives, report agencies.“We will invest Rs 1,500-1,700 crore (Rs 15-17 billion) to undertake new projects and initiatives spread across sectors including airports, roads and manufacturing," GMR Group Director for Roads and Finance G B S Raju said yesterday.The company is looking at various options to fund this plan including an initial public offer, IPO, or private equity, he added.Meanhwile, the company has bagged won three road projects at worth Rs 1,500 crore (Rs 15 billion) for a total length of 205 km.“The three road projects for total length of about 205 km will be at an estimated cost of Rs 1,500 crore (Rs 15 billion) on Build, Operate and Transfer, BOT, basis for a concession period of 20 years," he said.The first project is strengthening, widening and improvement of the existing two lane road into four lane road between Adloor Yellareddy and Kalkallu/Gundla Pochanpalli on NH-7 covering a distance of 100 km structured on BOT on an annuity model at cost of about Rs 650 crore (Rs 6.50 billion), he said.The second project is strengthening and improvement of the stretch between Shivrampalli/Faruknagar and Jadcherla on NH-7 in Andhra Pradesh of 70 km, which would be on BOT using toll model at a cost of Rs 450 crore (Rs 4.50 billion), he added.Earlier in June, the Group won the bid for the expansion of Ambala-Chandigarh corridor in the states of Haryana and Punjab covering a distance of 35 km on BOT using the toll mode at Rs 400 crore (Rs 4 billion).

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