Reliance Infrastructure Gets Nod From NHAI For Sale Of Delhi-Agra Road To Cube Highways
Reliance Infrastructure Ltd. has got in-principle nod from the National Highways Authority of India for sale of Delhi-Agra toll road to Cube Highways and Infrastructure for Rs 3,600 crore, a company official said on Thursday.
Reliance Infrastructure will utilise the proceeds to reduce debt.
"Reliance Infrastructure has received the in-principle approval for Harmonious Substitution in the Delhi-Agra toll road project on Jan. 7 from the National Highways Authority of India. Reliance Infrastructure will receive an enterprise value of Rs 3,600 crore including equity of up to Rs 1,700 crore," the official said.
This approval paves the way to close the sale of the 180-kilometre 6-lane Delhi-Agra toll road to Cube Highways and Infrastructure III Pte Ltd., which is owned by a Singapore-based Global Infrastructure Fund, I Squared Capital, and a wholly-owned subsidiary of the Abu Dhabi Investment Authority, the official said.
The entire proceeds will be used by Reliance Infrastructure to pay lenders and reduce the debt of the company, the official said.
This is in line with the commitment made by Reliance Infrastructure to its 16 lenders on July 6, 2019, when lenders signed an inter-creditor agreement for resolution of debt and granted moratorium to the company on the interest and principal payments.
Reliance Infrastructure, which has a total debt of Rs 6,000 crore, is on track to reduce leverage even further as it focuses to be an asset- and capital-light entity, the company had said in September last year.
Addressing the shareholders at the company's annual general meeting, its Chairman Anil Ambani had said, "our intent is to reduce the debt further. At present, we have around Rs 6,000 crore of debt but with a large net worth," adding that the company will focus on the domestic market and take up more complex infrastructure and transportation projects.