Ashoka Buildcon has refinanced and bought a stake in Jaora-Nayagaon section of state highway number 31 in Madhya Pradesh, India.

To be more specific, Jaora-Nayagaon Toll Road Company (JTCL) has completed refinancing of its debt of Rs 5.52 billion (US$82.3 million) with State Bank of India (SBI).  After refinancing the interest cost has been reduced to 9.80% p.a. resulting in a saving of 1.50% p.a.

Additionaly, Ashoka Buildcon, through its subsidiary Viva Highways, has bought a 8.51% stake (24.42 million equity shares in JTCL)  in the toll road for Rs3.42 billion (US$51 million) from PNC Infratech.

The toll road PPP project, which is currently completed, involved the design, construction, finance, strengthening, widening, operation and maintenance for the four-laning of the Jaora-Nayagaon Section from Km.125.00 to Km.252.81 on SH-31 to 4-Lane section including bypass in the State of Madhya Pradesh.

The project has been developed on build, operate and transfer (BOT) basis and the concession period is 30 years.

The total project investment was estimated at Rs8.74 billion (US$130.3 million). It was financed by State Bank of India, State Bank of Patiala, State Bank of Indore, State Bank of Bikaner & Jaipur, Punjab National Bank, Bank of India, and IIFCL.

JTCL is currently owned by SPML, SREI Infrastructure Finance Ltd, Viva Highways and PNC Infratech.