TRIL Roads Private Limited (‘TRPL’), a 100% subsidiary of Tata Realty and Infrastructure (‘TRIL’), today signed an agreement with Actis for a joint investment of US$200m. TRIL will invest US$122.5m and Actis will contribute US$77.5m for road and highway projects in India.
Over the next few years, TRPL intend to execute and develop road and highway projects aggregating approximately US$2 billion.
TRIL has a partnership with Atlantia, one of Europe’s largest toll road operators, to bid for concessions to upgrade, operate and toll existing Indian roads and highways. Actis is investing in TRIL Roads; a subsidiary of Tata Realty and Infrastructure Limited. TRIL is itself a 100% subsidiary of Tata Sons.
Commenting on the development, Mr. R.K. Krishna Kumar, Chairman, TRIL said, “We are delighted to welcome Actis as a partner in our roads business. The House of Tata’s has always endeavoured to set global standards of quality and excellence in the businesses we operate in. We will bring world-class quality and safety standards for the Indian roads sector and strive to improve the quality of life for the common man. We are confident that this partnership will greatly contribute to the infrastructure development of the country.”
Mr. Sanjay Ubale, Managing Director, TRIL commented, “The partnership with Actis will greatly enhance TRIL’s capacity to invest in large road projects that the National Highway Authority India intends developing through the public-private-partnership format. TRIL and Actis share the same set of values and are committed to bringing world-class technology and project management expertise in this sector.”
Commenting on the joint venture, Paul Fletcher, Senior Partner at Actis said, “High economic growth, an increasingly mobile population, and greater levels of trade are fuelling traffic flows across India. The Indian government’s National Highways Development Program is the largest highway development programme in the world. The opportunity to develop an Indian road platform alongside a world-class partner like the House of Tata’s is extremely compelling. We are delighted to be embarking upon this joint-venture.”
Tata and Atlantia confirmed their maiden project in the roads and highways sector in 2009 by winning the concession for the 110 km Pune-Solapur Expressway. This project, valued at approximately US$308m is being implemented on a build, operate and transfer (‘BOT’) basis from National Highway Authority of India (‘NHAI’).
The consortium of Tata, Atlantia and Actis creates a triumvirate with excellent bidding credentials, fundraising expertise and strong project development and operating capabilities.