GMR Group to make fresh investments in road projects

Bangalore: GMR Group, a major player in the infrastructure sector, plans to make fresh investments in road projects worth over Rs 2,000 to Rs 2,500 crore during the next two years.

The company, which inaugurated its first highway project in the North, hopes to complete three other pending projects in Andhra Pradesh and Tamil Nadu by the end of February. The total cost of these projects is Rs 2,000 crore.

Mr P.B. Vanchi, Adviser and Director in GMR Group, said that his Group, with a good record in timely implementation of projects and servicing its debts, should not face difficulty in raising debt even under the current environment.

With some of its current road projects starting to yield revenues, the company sees no difficulty in funding the new projects, he said.

However, he added, the company would evaluate the projects on merit in terms of quick cash returns to freeze its investment on select projects that met with viability conditions.

Mr Vanchi said GMR Urban Infrastructure and Highway Division of GMR Infrastructure has been shortlisted for nine road projects with Rs 2,000 to 2,500 crore.

He said GMR Infrastructure inaugurated its first project in North 35 km Ambala-Chandigarh stretch of the Punjab-Haryana Highway.

The toll road, with one of the highest traffic density, catering to 18,000 vehicles per day, and serving as a key link between Punjab, Haryana, Himachal Pradesh and Delhi, was executed in 30 months without much cost escalation at Rs 500 crore.

Mr Vanchi said: 'We are very upbeat on the future of highway development in the country and are interested in the new projects which are being awarded by NHAI in phase III and V of NHDP. We have been shortlisted for a number of these projects and are currently evaluating them.'

GMR Group expects to commission three more road projects within the current financial year, including four-laning of the 107-km stretch between Adloor and Pochanpalli on NH-7 in Andhra Pradesh, the 58 km stretch between Shivrampalli-Faruknagar and Jadcherla.

The other project is the 71-km stretch of Tindivanam and Ulundurpet on NH-5 in Tamil Nadu, which costs Rs 820 crore.