NEW DELHI, Jan 20: In a bid to monetise its road assets and reduce debt, infrastructure firm Gayatri Projects Ltd (GPL) is selling stake in Western UP Tollway Ltd (WUPTL).
The government last year allowed developers to divest 100 per cent equity in projects two years after the completion of such schemes, a move aimed at fast-tracking highway projects by making additional funds available for investments.
“As part of strategic initiatives to divest the road projects, NCC Ltd and GPL alongwith its subsidiary Gayatri Infra Ventures Ltd, have executed a share purchase agreement on January 19 with Cube Highways and Infrastructure to sell their entire shareholding in WUPTL,” it said in a BSE filing.
The transaction is expected to be completed within 1-2 months, after which Cube Highways and Infrastructure, a unit of global infrastructure investment manager will emerge the sole owner of WUPTL, it said.
WUPTL is a four-lane highway project connecting the Meerut-Muzaffarnagar section of NH 58 in Uttar Pradesh under the National Highways Development Project (NHDP).
The project has been fully operational since since October 2011, with a 20 years tolling period based on concession agreement executed with National Highways Authority of India.
“This divestment move is in line with GPL’s management efforts to reduce its debt burden and to go forward with a more asset-light approach,” it said. (PTI)
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