Gayatri Projects (GPL) is scouting for a strategic partner to handle a 207-km road project that was awarded to it by the Andhra Pradesh Government. GPL had submitted bids through a consortium with DLF.

GPL and DLF together are likely to hold 52 per cent of the equity and the balance 48 per cent will be offered to a strategic partner. GPL is likely to float a SPV to accommodate the strategic partner in the project and achieve financial closure by November 2010.

The four-laning of an existing two-lane road between Hyderabad and Ramagundam is expected to cost about Rs 2,200 crore. The project to be taken up on BOT basis is likely to be ready within 30 months from the date of achieving financial closure.

The company has a viability gap funding of Rs 454 crore for the project. While the equity is likely to be about Rs 246 crore, the remaining Rs 1,500 crore is to be raised through debt.

Also See:

Gayatri Projects bags road project (5-May-10) 

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