The Hindustan Construction Company declared on Wednesday that it had agreed with Cube Highways to sell Baharampore-Farakka Highways Ltd (BFHL) for Rs 1,279 crore.
It is a 101 km street in West Bengal that interfaces Kolkata and the port of Haldia to the state's northern locale and North-East India as a feature of National Highway-12.
The street project is possessed by HCC Concessions Ltd (HCON), an auxiliary of HCC Ltd, and the exchange with Cube Highways is organized so that the gathering will get up to Rs 900 crore in all out liquidity. HCC Concessions Ltd prompt parent is HCC Infra.
HCC said that HCC Group has agreed with Cube Highways and Infrastructure V Pte Ltd for a 100 percent offer of BFHL for Rs 1,279 crore, inferring a Rs 600 crore value valuation. Notwithstanding the value esteem, a Rs 200 crore earnout installment is expected in May 2024 assuming that income targets are met.
For the length of the concession, HCON will be qualified for a material income share.
The organization said it will securitize a part of these future BFHL receivables with a credit of up to Rs 300 crore, giving the gathering absolute liquidity of up to Rs 900 crore.
BFHL has a 19-year balance concession period. Shutting changes, standard due tirelessness, and endorsements, including from the National Highways Authority of India (NHAI), are generally dependent upon the exchange.
HCC framed Baharampore Farakka Highways in 2010 as a particular reason vehicle to configuration, fabricate, finance, work, and move (DBFOT) tolls on the four-path interstate among Baharampore and Farakka on NH-12 (prior NH-34).
The organization was allowed a 25-year (extendable to 30-year) concession by NHAI, and BFHL started cost procedure on May 14, 2014.
HCC Concessions Ltd has created and worked NHAI concessions worth over Rs 7000 crore.
HCC Ltd, the holding organization, had defaulted on its obligation. It owes a sum of Rs 9,727 crore in solidified obligation, which is right now being rebuilt.