Gammon Infrastructure Projects Ltd (GIPL), a public listed subsidiary of construction major Gammon India Ltd, has obtained its board approval to acquire Sadbhav Engineering's 20 per cent equity stake in a road project on Mumbai Nasik Expressway for Rs 72 crore (just under $12 million), as per a stock market disclosure.
Mumbai Nasik Expressway Ltd (MNEL) is the special purpose vehicle promoted by Gammon Infrastructure to develop, operate and manage the Vadape to Gonde section of the National Highway no.3 in Maharashtra.
The project involves four-laning of the 99.5 km Vadape-Gonde (Mumbai-Nasik) section of the highway.
This contract was given in June 2005 to Gammon India, Sadbhav Engineering and Billimoria consortium of contractors. The concession/licence period for this project is 20 years that runs until October 2025.
Sadbhav Engineering is a construction firm with focus on road, irrigation and mining projects. It is one of the largest BOT (build, operate and transfer) developers in the road sector in India.
In September last year, Sadbhav Engineering agreed to buy out stakes from its joint venture partner GKC Projects Limited in two SPVs for an undisclosed amount.
On the other side, Gammon Infra currently has a portfolio of 13 projects including six operational road assets, three under construction roads, two ports and two renewable energy projects (under development).
(Edited by Joby Puthuparampil Johnson)