gautam adani group Adani The Group is in discussion with State Bank of India India (SBI) will raise around Rs 12,000 crore in long-term project loans, which will be used to build India’s biggest expressway project- the Greenfield Ganga Expressway, which will connect Meerut with Prayagraj. In December last year, Adani Enterprises (AEL) bagged a contract from the Uttar Pradesh government for the construction of three stretches of the 594-km-long Ganga Expressway.
Quoting people familiar with the matter, ET reported that SBI is engaged in a road traffic survey before finalizing the loan terms. The company has the largest portion of Phase 1 (594 km) of six-lane, which can be extended to eight-lane, greenfield. Ganga Express Way Meerut to Prayagraj.
Though the terms are yet to be finalised, the loan will be of longer maturity – anything between 10 and 30 years. The loans, if approved, could be offered at high single-digit interest rates in the 7-9 percent range, and the bank could sell down portions of the total loans given to other local banks, the financial daily mentioned. .
A source told ET, “The bank is conducting a survey on road traffic with the help of an outside agency, which could be one of the four big companies. This survey will help in predicting the possible toll collection that may arise after the completion of the project. So, it will decide the debt-equity ratio of the bank. So, suppose if the toll collection has more potential for toll collection then it will reduce the equity share. In the absence of parallel roads, the debt-equity ratio could go up to 80:20, brightening the prospects for higher toll collection.
The 594 km long expressway will be spread over the districts of Meerut, Hapur, Bulandshahr, Amroha, Sambhal, Badaun, Shahjahanpur, Hardoi, Unnao, Rae Bareli, Pratapgarh and Prayagraj. It will start from Bijauli village in Meerut and end near Judapur Dandu in Prayagraj.
According to a statement issued by the Prime Minister’s Office, the expressway will also boost several sectors including industrial development, trade, agriculture, tourism.
The Ganga Expressway will be constructed in 6,500 hectares of land. The estimated cost of AEL’s three awards is Rs 17,000 crore.
Earlier this year, it was reported that Adani Enterprises would incur capital expenditure of over Rs 55,000 crore in the new energy, airport and roads sectors over the next few years.
Adani Enterprises (AEL), which defines itself as an ‘incubator on setting up diverse new businesses’, has four verticals – Resources, Transport & Logistics, Utilities and Strategic. The road segment, which is part of the company’s transport and logistics vertical, will see maximum capex outlay in the next 5-6 years, the company had said earlier.
Adani Enterprises Limited (AEL), a group company of Adani, posted a consolidated net profit of Rs 304.32 crore attributable to owners for the quarter ended March 31, 2022. AEL’s consolidated net profit attributable to owners stood at Rs 233.95 crore for the quarter ended March 31, 2021, in the previous fiscal, registering a growth of 30 per cent on a year-on-year (YoY) basis. AEL’s consolidated revenue grew 83.66 per cent to Rs 25,141.56 crore in Q4 FY22 from Rs 13,688.95 crore in Q4 FY21, according to its filings with stock exchanges.
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