IRB Infrastructure Developers' financial closure for the Rs.2,800 crore Surat-Dahisar six-lane project is likely to be further delayed. The company was to achieve the financial closure by end-October 2008.

The tight liquidity situation, high interest rates and increasing caution among banks over lending is making it difficult for infrastructure firms to get funding for projects. IRB has already received sanction letters for Rs.1,856 crore from a consortium of banks, which includes Canara Bank, Indian Overseas Bank, Andhra Bank, Bank of India and Union Bank of India. The first two are the leading contributors, having agreed to provide Rs.400 crore each. The company is yet to raise Rs.100 crore more in debt.

IRB bagged the 239-km Surat-Dahisar project in January this year. The project has a debt component of Rs.1,956 crore and an equity capital of Rs.540 crore. The rest will come from the company's internal accruals.

Also See:

IRB Infra nearing financial closure for Surat-Dahisar road project(22-Oct-08)

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