IRB Infra bags Rs. 10,050-cr project in J&K

IRB Infrastructure Developers has bagged a Rs. 10,050-crore order to construct the Zozila pass tunnel in Jammu & Kashmir.

The company has received a Letter of Award from the Ministry of Road Transport and Highways for the construction, operation and maintenance of the longest tunnel in South-East Asia, Zozila pass tunnel, in Jammu & Kashmir, a statement issued said.

Reacting to the news, shares of the company were trading at Rs. 254.05, up 3.76 per cent at 11.15 am local time.

“It is the biggest national highway project awarded in India in terms of project cost with a tunnel length spanning 14.08 km and costing of Rs. 10,050 crore,” company’s Chairman and Managing Director Virendra Mhaiskar said.

The scope of the project includes constructing approaches on NH-1 (Srinagar-Sonmarg-Gumri Road) on design, build, finance, operate and transfer (annuity) basis.

“This project has a strategic and socio-economic importance as it will provide the much-needed all-weather connectivity between J&K and Leh-Ladakh, which remains cut-off during winter due to heavy snowfall and hence assumes national importance,” he said.

The project also involves construction of tunnel spanning a length of 14.08 km and an approach road of 10.8 Km with three vertical ventilation shafts, snow gallery of 700 meters and avalanche protection measures.

The construction of the tunnel is scheduled to be completed in seven years and the concession period is 22 years.

He further said IRB Infra will receive a semi-annual annuity of Rs. 981 crore from the government, which will start after completion of construction of the project, twice in a year till the end of the concession period.

With this order, IRB expands its base to the ninth state.

The company’s order book now stands at Rs. 16,430 crore.

HBL