Thrissur Expressway project gets Rs 555-Cr IndiaRF investment

Thrissur Expressway is an SPV of KMC Constructions, and is part of the NH that connects Kochi in Kerala and Salem in Tamil Nadu.

Thiruvananthapuram: Thrissur Expressway Ltd (TEL), a 28-km highway project in Kerala, between Thrissur and Vadakkanchery, has received investment to the tune of US$ 75 million, which translates into Rs 555 crore, from the India Resurgence Fund (IndiaRF). The India Resurgence Fund is promoted by Piramal Enterprises and Bain Capital Credit, along with international co-investors.

Thrissur Expressway Ltd is a special purpose vehicle of the Hyderabad-based KMC Constructions Limited. TEL is a part of the National Highway that connects Kochi in Kerala and Salem in Tamil Nadu, and passes through variety of large cities such as Erode, Coimbatore, Palakkad and Thrissur.

Thrissur Expressway passes through Erode, Coimbatore, Palakkad, Thrissur

The investment is to be utilized towards restructuring of TEL’s existing debt and for last mile financing to enable project completion. TEL was awarded the project in 2009, for widening the existing two lane stretch to six lanes, by the National Highway Authority of India under the Design, Build, Finance, Operate, and Transfer basis, for a concession period of 20 years.

According to Shantanu Nalavadi, Managing Director, IndiaRF, “the project will significantly improve the connectivity between Kerala and Tamil Nadu on completion. He added that the expressway project will generate significant efficiency as well as savings for both commercial and passenger traffic.

Investment significant in terms of speedy project completion

IndiaRF has the capital and expertise to invest in similar opportunities that will provide effective solutions that address bottlenecks in infrastructure projects of national interest, resolve issues in the capital structure of such projects, support financial institutions and create win-win situations for all stakeholders, he pointed out, while elaborating on the latest investment.

The investment from IndiaRF may be seen as significant as it comes at a critical juncture when the project is racing towards completion. KMC Managing Director Vikram Reddy said that the company was able to design, build and operate a 1km long tunnel which achieves the twin objective of improving connectivity and at the same time, contributes to the rich biodiversity of this region.