IL&FS Transportation Networks qualifies for Rs16k cr projects

IL&FS Transportation Networks qualifies for Rs16k cr projects

New Delhi: IL&FS Transportation Networks on Tuesday said that it has qualified for 15 highway projects worth Rs16,000 crore even as it will start toll collection on the 124 km Beawar-Gomti stretch by June next year.

“We have qualified for 15 National Highway Authority of India (NHAI) projects worth Rs16,000 crore for a total of 928 km. We will start tolling Beawar-Gomti highway by June next," IL&FS Transportation Networks managing director Karunakaran Ramchand said.

Ramchand, however, did not divulge the toll collection target for the Rajasthan project.

The Mumbai-based company is also bidding for 72 projects worth Rs47,000 crore totalling 755 km.

It is planning to bid for ‘mega´ projects and expressway contracts that NHAI has lined up.

“We are definitely interested in mega projects, we will target at least one," Ramchand said.

NHAI has planned 10 mega projects that require an investment of Rs4,000 crore each. It has also lined up four expressways projects totalling 1,000 km.

Last fiscal, the company earned Rs204 crore from toll from various highways projects and received Rs112 crore as payment from government for construction and maintenance of other stretches.

The company has filed the draft red herring prospectus with stock market regulator Securities and Exchange Board of India (Sebi) for its initial public offering (IPO) to raise Rs700 crore.

“About Rs500 crore would towards payment of the debt. We have around Rs1,000 crore debt at the end of the second quarter of the current fiscal," he said.

The rest of the proceeds of the IPO would be utilised for working capital and to pay back Trinity Capital, an infrastructure fund, which plans to exit from the company by diluting its entire stake in the IPO.

Trinity Capital holds 2.5% stake in IL&FS.