IRB Infra Proposes Transfer of ₹1,702 Cr HAM Project

IRB Infrastructure Developers (IRB Infra) has presented its Gandeva Ena hybrid annuity model (HAM) project valued at ₹1,702 crore to the IRB InvIT Fund, its public infrastructure investment trust (InvIT).

The board of directors of the company, during its meeting today (Thursday), authorized the initial non-binding proposal for the transfer of the project.

The 27.5-kilometre segment is a component of the upcoming Delhi–Mumbai Greenfield Expressway Project. The project encompasses the eight-laning development of the Gandeva Ena segment in Gujarat as part of the National Highways Authority of India (NHAI) Package-VII of the Bharatmala Pariyojana.

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“This action is consistent with our Bid–Execute–Stabilize–Transfer (BEST) strategy to release capital and promote growth." "Presenting our second HAM asset on this expressway to the public InvIT ensures long-term cash flow visibility for the InvIT while freeing up resources to bolster IRB’s future expansion," stated Virendra Mhaiskar, the company’s chairperson and managing director, noting that the deal may be finalized by this calendar year.

The Gandeva Ena HAM Project has recently obtained a provisional completion certificate and serves as a revenue-generating operational asset currently included in the company's portfolio. VM7 Expressway Private Limited, a fully-owned subsidiary of IRB Infra, is executing the project under a concession granted by the NHAI.

Recently, the IRB Infrastructure Trust, a private InvIT backed by IRB Infra, obtained the Letter of Award (LoA) from NHAI for the toll-operate-transfer-17 (TOT-17) package worth ₹9,270 crore.

IRB possesses an asset portfolio exceeding ₹80,000 crore through the parent firm and two InvITs, not counting TOT-17. With the inclusion of the TOT-17 project in IRB Group’s project portfolio (comprising both private and public InvIT), the total will reach 27 highway projects, consisting of 18 build-operate-transfer (BOT), 5 TOT, and 4 HAM projects.