DLF to seek cheaper funds for Haryana metro project
The Hindu Business Line, March 14, 2009, Page 5
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DLF is developing a metro link from Delhi Metro Rail Corporation’s Sikanderpur station in Gurgaon to National Highway 8.
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Our Bureau
New Delhi, March 13 DLF Metro Ltd on Friday said it will approach India Infrastructure Finance Company Ltd (IIFCL) to seek lower cost funds for the Rs 742-crore project of building 6.1 km of metro rail tracks in Haryana.
A consortium of ITNL ENSO Rail Systems Ltd, a group company of IL&FS and DLF, had emerged the sole bidder for the project being implemented through public-private partnership by the Haryana Urban Development Authority (HUDA).
Under the project, DLF is developing a metro link from Delhi Metro Rail Corporation’s Sikanderpur station in Gurgaon to National Highway 8, where DLF’s Cybercity township is located.
According to Mr C.B.K. Rao, Executive Director, DLF Metro Ltd, “The Rs 742-crore project cost will have an additional financing cost of Rs 160 crore. IL&FS, which has experience in the area, will work on the financial closure.”
The project will be executed on a debt-equity ratio of 70:30. From the equity portion of Rs 225 crore, IL&FS will own 74 per cent and DLF will own 26 per cent, he said.
IIFCL has so far raised Rs 9,800 crore through bonds for various infrastructure projects, and the projects will get the funds at a rate of 10.35 per cent from the banks.
The IIFCL Managing Director, Mr S.S. Kohli, said the IIFCL has raised the amount at an interest rate of 6.85 per cent which will be given to banks at 7.85 per cent.
“We plan to complete the 6.1-km metro rail project in Gurgaon by December 2011. We are ready from our end. As soon as we get the letter of intent from the State Government, we can start construction,” Mr Rao said adding that he had spoken to IIFCL seeking a debt of about Rs 600 crore.
The company has initiated talks with metro coach manufacturers such as BEML, Bombardier, Alstom and Siemens.
The Hindu Business Line, March 14, 2009, Page 5
--------------------------------------------------------------------------------
DLF is developing a metro link from Delhi Metro Rail Corporation’s Sikanderpur station in Gurgaon to National Highway 8.
--------------------------------------------------------------------------------
Our Bureau
New Delhi, March 13 DLF Metro Ltd on Friday said it will approach India Infrastructure Finance Company Ltd (IIFCL) to seek lower cost funds for the Rs 742-crore project of building 6.1 km of metro rail tracks in Haryana.
A consortium of ITNL ENSO Rail Systems Ltd, a group company of IL&FS and DLF, had emerged the sole bidder for the project being implemented through public-private partnership by the Haryana Urban Development Authority (HUDA).
Under the project, DLF is developing a metro link from Delhi Metro Rail Corporation’s Sikanderpur station in Gurgaon to National Highway 8, where DLF’s Cybercity township is located.
According to Mr C.B.K. Rao, Executive Director, DLF Metro Ltd, “The Rs 742-crore project cost will have an additional financing cost of Rs 160 crore. IL&FS, which has experience in the area, will work on the financial closure.”
The project will be executed on a debt-equity ratio of 70:30. From the equity portion of Rs 225 crore, IL&FS will own 74 per cent and DLF will own 26 per cent, he said.
IIFCL has so far raised Rs 9,800 crore through bonds for various infrastructure projects, and the projects will get the funds at a rate of 10.35 per cent from the banks.
The IIFCL Managing Director, Mr S.S. Kohli, said the IIFCL has raised the amount at an interest rate of 6.85 per cent which will be given to banks at 7.85 per cent.
“We plan to complete the 6.1-km metro rail project in Gurgaon by December 2011. We are ready from our end. As soon as we get the letter of intent from the State Government, we can start construction,” Mr Rao said adding that he had spoken to IIFCL seeking a debt of about Rs 600 crore.
The company has initiated talks with metro coach manufacturers such as BEML, Bombardier, Alstom and Siemens.
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