Jaypee seeks nod to sell toll income to pare debt
NEW DELHI: Jaypee Infra, the developer of Yamuna Expressway , has sought permission from the Yamuna Expressway Development Authority (YEDA) to securitise and sell the future income from toll collections to reduce its liabilities over Rs 8,212 crore in long-term debt. The YEDA Board has discussed the matter in its board meeting on June 9 and noted that the matter should be referred to the state government.
According to a source in the authority , the company will hive off the entire operation and maintenance to the buyer for the remaining licence period.The Jaypee Infra has 37 years licence period ending 2050 to operate and maintain the expressway . The company is talking to a couple of funds like IDFC Alternatives, a subsidiary of IDFC and global fund I Square Capital. A source said the deal is likely to be clinched by IDFC Alternatives for around Rs 3000 crore. The company did not respond to queries.
Annual toll collections on the expressway is around Rs 200 crore, a source said. The income from toll collection is lower than what was projected at the time of conception of the project. This is mainly because the Eastern Peripheral Road connecting Kondli-GhaziabadPalwal could not be completed.This would have brought Agra bound traffic to the expressway .
Jaypee Infra, a subsidiary of Jaiprakash Associate (JAL), is feeling the heat of a slowdown in the real estate sector.Even the parent company is reeling under huge debt of Rs 21,198 crore and is selling assets like cement manufacturing plant and power generating plants to reduce debt.
To fund the construction of the 165 km six-lane expressway connecting Noida to Agra with an investment of Rs 10,000 crore, the company also got the rights for developing five townships on 6,175 acre along the expressway besides collecting the toll. Because of the delay , development cost has increased to over Rs 12,000 crore.