Mumbai-Pune is the first Expressway in India. It is one of the busiest highway corridors in India, which parts the Golden Quadrilateral on the Mumbai Bangalore-Chennai arm; connecting the bustling metropolis of Mumbai with the industrial and cultural centre of Pune.
This Expressway has not only provided faster and better connectivity between the cities, it has also led to significant value creation. More importantly, it has led to the expansion of urban limits of both Pune and Mumbai, aiding in the decongestion of the two cities.
The Mumbai-Pune Expressway project along with the Old Mumbai-Pune NH-48 project was awarded again in February 2020 to the Company by the Maharashtra State Road Development Corporation (MSRDC) under Toll-Operate-Transfer model. This is the first project in Company’s portfolio, under the Toll-Operate-Transfer (TOT) model.
IRB has successfully operated the same project for fifteen years until August 2019, and has won the concession again for another ~10.2 years. As per the concession agreement, IRB to pay MSRDC upfront Rs.6,500 crores and a further staggered payment of Rs.850 crores in year 2, Rs.850 crores in year 3 and Rs.62 crores in year 4, aggregating to Rs.8,262 crores.
The Sub-Concession Period of the project is until April 30, 2030 i.e. 10 years and 2 months.