Infrastructure major IVRCL has reported narrowing of its net loss to Rs 249.27 crore for the third quarter ended December 2016. The company had registered a net loss of Rs 345.47 crore in the same period a year ago.
The moot question is whether good intent has been accompanied by careful planning.
It was always going to be a difficult job. Roads development, battered and bruised by a heavy load of projects awarded in the recent past, remained stalled for various reasons ranging from land acquisition and bureaucratic red tape to a lack of accountability and transparency in the bidding process.
Investing in an infrastructure project isnÂ´t really glamorous, more so if it happens to be a still developing economy like India that needs to first create some basic infrastructure. A new road project or a thermal power plant many not excite as much as investing in a cutting-edge technology start-up in IndiaÂ´s own Silicon Valley, Bengaluru
IVRCL has put up Rs 4,000 crore worth of assets for sale in order to come out of debt burden in the next two years once the sale is successful. The assets for sale include road projects (both operational and under construction) and desalination plant in Chennai.
VRCL has bagged orders worth Rs 2,633 crore in Karnataka and Andhra Pradesh. The companyÂ´s irrigation division has secured orders worth Rs 2,492 crore while the water divisionÂ´s orders stood at Rs 140.85 crore, according to the company. The Andhra Pradesh government has awarded works under the Chittor District Water Supply Programme Phase-I to its water division. All the works will have to be executed between 18-36 months.
To supplement its working capital requirements, Hyderabad-based IVRCL is to raise Rs 1,200 crore and infuse capital into new projects. To facilitate fund-raising, the construction and infrastructure company has enlisted the services of SBI Caps, sources said.
Hyderabad-based IVRCL has monetised three road tollways by selling stake to TRIL Roads, a Tata Group company. The deal, covering all the three projects in Tamil Nadu, is estimated at Rs 2,200 crore. This stake sale agreement is part of the Hyderabad-based infrastructure company IVRCLÂ’s Strategic Business Plan to monetise its build, operate and transfer (BOT) road assets.
Hyderabad-based IVRCL won a contract from the National Highways Authority of India (NHAI) on March 31 last year, to develop a 121-km stretch of road between Rajahmundry and Gundugolanu in Andhra Pradesh. Almost a year later, the company has still not managed to arrange bank loans for the Rs 1,617 crore project.
Haryana government awaÂrded Rs 1,201.70 crore order for four-laning a151 km stretch of a highway to IVRCL Assets & Holdings.The contract includes rehabilitation, up-gradation and widening of the existing carriageway to four-lane standards with construction of new pavement, rehabilitation of existing pavement, construction of bridges, drains, etc.