R-Infra raises 7k cr for Mumbai Metro project

Mumbai, October 15: Reliance Infrastructure declared on Thursday that it has amassed debt totalling 7,000 crore for developing the second Metro rail project in Mumbai, connecting the suburbs of Charkop, Bandra and Mankhurd. The total expenditure for the project stands at Rs.11,500 crore.
Mumbai Metro Transport Private, the Special Purpose Vehicle implementing the Charkop-Bandra-Mankhurd corridor, tied up the debt with seven financiers led by Axis Bank, the Anil Dhirubhai Ambani Group company said in a statement. The SPV is owned by the Reliance Infrastructure-led consortium, which includes Reliance Communications and SNC Lavalin of Canada.
“We have tied up the entire 7,000 crore of debt funding and are ready to achieve financial closure for the project within the stipulated period of nine months in the concession agreement. The average rate of interest on the debt is 10.5-11.0%,” Lalit Jalan, CEO of Reliance Infrastructure.
The project, which is being established under the public-private partnership model, would receive a viability gap funding of 2,298 crore from the Maharashtra government, while the remaining amount would be infused by Reliance Infrastructure through equity contribution.
Reliance Infrastructure is executing the project on a build-operate-transfer basis, for a concession period of 35 years with an extension clause of another 10 years.
The project entails setting up a 32 km metro rail line connecting Charkop in northern Mumbai to Bandra in the west and then to Mankhurd in the eastern part of Mumbai. The route will have 27 stations. “We hope to start construction on the second metro line by December. As per our agreement, the project would be completed in five years from the beginning of construction,” Mr Jalan said.
Reliance Infrastructure is also executing the first Metro rail project in Mumbai on the Versova-Andheri-Ghatkopar route. That project would be completed ahead of schedule in 2011, the company said. After the transfer of its power generation units, except the 500 MW plant at Dahanu in Maharahstra, and upcoming power projects to group company Reliance Power, infrastructure projects have become the key growth area for Reliance Infrastructure. On Thursday, Reliance Infrastructure’s scrip ended at 1,074.70 on BSE, down 2.02%.

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