NewsOrders & DealsIRB Infrastructure Trust Executes ₹9,270 Crore TOT-17 Concession Agreement With NHAIIRB Infrastructure Trust Executes ₹9,270 Crore TOT-17 Concession Agreement With NHAI
IRB Infrastructure Trust has formally executed the concession agreement with NHAI for the TOT-17 highway project in Uttar Pradesh through its project SPV. The agreement involves an upfront bid concession fee of ₹9,270 crores and covers three major highway sections including Lucknow-Ayodhya, Ayodhya-Gorakhpur, and Lucknow-Sultanpur corridors. This execution will increase the trust's asset portfolio by 20% to ₹65,000 crores, strengthening its position in India's highway infrastructure sector.
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IRB Infrastructure Trust has successfully executed the concession agreement with the National Highways Authority of India (NHAI) for the TOT-17 highway project through its project SPV, IRB Harihara Corridors Private Limited. This significant development follows the earlier agreement announcement and marks the formal commencement of the toll-operate-transfer project in Uttar Pradesh.
Concession Agreement Execution
The concession agreement has been formally executed between IRB Harihara Corridors Private Limited, the project Special Purpose Vehicle (SPV) incorporated by IRB Infrastructure Trust, and NHAI. This agreement covers the tolling, operation, maintenance and transfer of multiple highway sections across Uttar Pradesh under the TOT-17 project framework.
| Parameter: | Details |
|---|---|
| Project SPV: | IRB Harihara Corridors Private Limited |
| Agreement Type: | Concession Agreement |
| Partner: | National Highways Authority of India (NHAI) |
| Model: | Toll-Operate-Transfer (TOT) |
Project Scope and Financial Details
The TOT-17 project encompasses three major highway sections in Uttar Pradesh. The trust will pay an upfront bid concession fee of ₹9,270 crores to NHAI for the project rights. The comprehensive project includes strategic highway corridors connecting key cities in the state.
| Highway Section: | Route Details |
|---|---|
| Lucknow-Ayodhya: | NH-28 (New NH-27) from km 15.400 to km 137.970 |
| Ayodhya-Gorakhpur: | NH-28 (New NH-27) from km 136.759 to km 252.860 |
| Lucknow-Sultanpur: | NH-731 from km 90.370 to km 217.795 |
Financial Impact and Portfolio Growth
The execution of this concession agreement will significantly expand IRB Infrastructure Trust's asset portfolio. The trust's asset portfolio is expected to increase by 20% to ₹65,000 crores with the addition of the TOT-17 project. The project operates under a tariff revision mechanism with fixed 3% per annum plus 40% of Wholesale Price Index (WPI).
| Financial Metric: | Value |
|---|---|
| Bid Concession Fee: | ₹9,270 crores |
| Portfolio Growth: | 20% increase |
| Total Portfolio Value: | ₹65,000 crores |
| Tariff Revision: | 3% p.a. + 40% WPI |
Strategic Infrastructure Development
This concession agreement execution reinforces IRB Infrastructure Trust's position as a major player in India's highway infrastructure sector. The TOT-17 project provides the trust with operational control over critical highway assets in Uttar Pradesh, one of India's most economically significant states. The toll-operate-transfer model ensures long-term revenue generation through toll collections while maintaining and operating these strategic highway corridors.
