IL&FS Transportation, Ramky Infra to swap stakes in two road projects
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IL&FS Transportation Networks Ltd and Ramky Infrastructure Ltd have agreed to swap their stakes in two road joint ventures.

The companies said in stock-exchange filings on Friday that IL&FS Transportation will sell its entire 50% stake in NAM Expressway Ltd to Ramky and acquire the partner's 50% stake in Jorabat Shillong Expressway.

IL&FS Transportation will receive a net payment of Rs 43.20 crore ($6.16 million) for the two transactions.

Jorabat Shillong Expressway was incorporated to implement a lane-expansion project under the build-operate-transfer annuity model, according to a report by India Ratings and Research.

The National Highways Authority of India gave the joint venture a 20-year concession to design, construct, develop, finance, operate and maintain a 61.8 km stretch between Jorabat in Assam and Barapani in Meghalaya. The concession expires in January 2031.

Another report by India Ratings said NAM Expressway’s road project is on a 212.5 km stretch across Andhra Pradesh and Telangana. The company was awarded the project by Andhra Pradesh Road Development Corporation before the state bifurcation.

IL&FS Transportation, a unit of Infrastructure Leasing & Financial Services Ltd, is an active player in the roads sector. Its recent deals include selling a part of its stake in two road projects to Delhi-based Oriental Tollroads Pvt. Ltd in October 2017.

In August 2016, the company had agreed to sell an 86.74% stake in Andhra Pradesh Expressway Ltd to Singapore-based Cube Highways & Infrastructure Pte. Ltd for Rs 140.37 crore ($21 million). Cube is a joint platform of private equity firm I Squared Capital and International Finance Corporation.

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