Tuesday, June 26, 2012

NICE rouses B'lore-Mysore infra project on tough SC order

After nearly two years in limbo, work on the Bangalore-Mysore Infrastructure Corridor may begin soon. CNBC-TV18's Vineetha Athrey reports that Bharat Forge-backed NICE (Nandi InfrastructureCorridor Enterprises), which was forced to halt work literally months away from completion due to land acquisition problems, has begun hunting for funds again.
A fresh round of talks has been initiated with a host of private equity firms, including Goldman Sachs, for the 164-km-long tolled expressway project.
Sources say that the target is to raise USD 500 million in two tranches - one of USD 200 million and another of USD 300 million. Of this, USD 200 million will be used to complete a 38-km expressway and two townships.
The additional USD 300 million will be used to develop a cricket stadium, exhibition centres, shopping complexes and power-and-water utilities. This renewed vigour is all thanks to the Supreme Court's recent directive to various stakeholders of the Bangalore-Mysore Infrastructire Corridor, to complete the project on a fast track.
NICE is now confident that the first phase can be completed in the next three-to-four months and plans to start the second phase immediately after. Sources say NICE is busy working out a suitable valuation for the second phase of the Rs 1.75-lakh crore project and expects to close the deal within the next two months.

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