CG Tollway, the special purpose vehicle (SPV) of IRB Infrastructure Developers, has achieved financial closure for the Chittorgarh-Gulabpura bypass project.

The project involves six laning of the bypass on NH-79 between Chittorgarh and Gulabpura stretching 124.87 km in Rajasthan, on BOT basis.

The company has signed a concession agreement with National Highways Authority of India (NHAI) for the project worth Rs 2,090 crore, and has tied up with the consortium of lenders led by State Bank of India.

Other members in the consortium of lenders include Bank of India, Bank of Maharashtra, Canara Bank, Indian Overseas Bank, Andhra Bank and Aditya Birla Finance.

The concession period for the project is 20 years including the construction period of 910 days. The tolling commences from the appointed date.

The project entails an annual premium payment to NHAI of Rs 228.60 crore. The premium payment triggers post three years from date of appointment.

The company is to invest sponsor contribution including internal accruals of Rs 690 crore towards its contribution in funding the project. The balance funding will be through the project finance of Rs 1,400 crore at an average cost of around 10.25 percent per annum.