New Delhi: Anil Dhirubhai Ambani Group (ADAG) company Reliance Infrastructure has said it would aggressively bid for more infrastructure projects, claiming it has no issue with finances as the firm is under-leveraged with unutilised capacity.
“Our capacity is under-utilised and we are under-leveraged,” Reliance Infrastructure chief executive officer Lalit Jalan said, claiming Reliance Infra is the largest developer of road and highways projects under the build, own, transfer (BOT) scheme of the government.
“The company has achieved the financial closure of five major 400-km road projects involving (a total of) Rs3,150 crore investment in Tamil Nadu. It is faring extremely well in all the sectors it forayed and plans aggressive bidding (for other infrastructure projects),” he said.
Financial closure is achieved after a company produces evidence of binding commitment from banks and financial institutions for the funding of the project.
In the National Capital Region, the company has undertaken projects worth Rs7,800 crore with a concession period of 17 years, Jalan said, adding, “We are executing two to four laning of 27.5 km Gurgaon-Faridabad project and upgradation of two lanes of 38.6 km Ballabgarh-Sohna Road.”
Projects under pipeline include Eastern Peripheral Expressway Covering 135 km and Krishna Walajpet project covering 150 km, he added.
Reliance Infra is the country’s first and only private sector builder and operator for Metro systems, he said.
“We are already into construction of the first line of Mumbai Metro system stretching 12 kms from Versova to Ghatkopar. Besides, we have also won the Delhi Metro’s airport express link stretching at a length of 22.5 kms. The total investment for these two projects is Rs4,900 crore,” Jalan said.
About the Mumbai project, he said, “We are hopeful of completing it in the second quarter of 2010-11, two years ahead of the schedule. The Rs2,350-crore project is to be financed by way of Debt, Grant and Equity in 51:27:22 ratio.”
“Our Delhi Metro project has total length of 23 km connecting New Delhi Railway Station to Dwarka through IGI Airport with 30 years concession period. Project cost of Rs2500 crore would be met by Debt: Grant: Equity in 2.33:0:1 ratio,” Jalan said adding, the financial closure is expected by the end of March 2009 and the debt syndication is in progress with Axis Bank as lead lender.
The project is expected to complete in the second quarter of 2010-11, before the Commonwealth Games.
Now known as Reliance Infrastructure Ltd, Reliance Energy Ltd was rechristened after diversification in newer segments of infrastructure.