Madhucon Projects Ltd, a Hyderabad based road developer, plans to sell at least 74% stake in Madhucon Agra-Jaipur Expressways Ltd to IDFC Alternatives Ltd, the private equity arm of IDFC Ltd.

The firm is a Special Purpose Vehicle (SPV) promoted by Madhucon Projects and SREI Infrastrucuture Limited to strengthen and widen the existing 57Km stretch between Bharatpur and Mahwa. The BOT project along National Highway (NH) 11 connects NH 8 with NH 2. The expressway connects Bharatpur with Mahua in the state of Rajasthan.

Tolling on the expressway commenced in May 2009 and the project has been awarded by the National Highway Authority of India (NHAI) with a concession period of 25 years starting 31 October 2005.

Madhucon Projects' plan to sell its stake in the asset comes at a time when nearly 50 roads projects are up for sale in the country. The road sector saw a slowdown with just 1,322km of projects awarded by the ministry in 2012-13 compared with a target of 9,500km. Slower economic growth has led a decline in road traffic and raised questions over the viability of a number of road and highway projects.

IDFC Alternatives is one of the few private equity firms that is actively looking at investments in operating infrastructure assets in the country. The firm managed to raise US$644 million for its infrastructure fund under subdued market conditions last year.