Road developer MEP Infrastructure and Projects Ltd on Thursday said it has signed a non-binding term sheet to sell six hybrid annuity model (HAM) projects to Cube Highways and Infrastructure Pte. Ltd for ₹450 crore.
Under the HAM model, the government commits up to 40% of the project cost and hands it over to a developer, who has to fund the balance 60% with debt and equity. On completion of the project, the National Highways Authority of India (NHAI) collects toll, while the developer gets an annuity in instalments.
Indian Highways Developers Pte. Ltd (an entity controlled by Cube Highways) will acquire MEP’s stake in six road assets, including MEP Nagpur Ring Road 1 Pvt. Ltd, MEP Sanjose Nagpur Ring Road 2 Pvt. Ltd, MEP Sanjose Arawali Kante Road Pvt. Ltd, MEP Sanjose Kante Waked Road Pvt. Ltd, MEP Sanjose Talaja Mahuva Road Pvt. Ltd and MEP Sanjose Mahuva Kagavadar Road Pvt. Ltd, MEP said in a stock exchange filing. Read More
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