Infrastructure company Madhucon Projects Ltd is in negotiations to divest four completed road projects and part stake in its power arm, which is implementing a 1,920-MW three-phase thermal power project in Andhra Pradesh.

The company expects to conclude the deal as early as possible. But the market conditions are causing delays in closing the transactions, according to S. Vaikuntanathan, former Group CFO and top executive.

Madhucon has a portfolio of four completed build, operate and transfer projects. This includes one NHAI project in Rajasthan (Bharatpur to Mahua Agra-Jaipur Expressway) and three national highway projects in Tamil Nadu.

“We expect to conclude the stake sale transaction relating to at least three of these completed projects. The new guidelines brought about by the NHAI with regard to 100 per cent divestment of stake encourages stake sale. This allows us to offload interest in completed projects and focus on new ones,” he said.

The company has overall debt of about Rs 3,500 crore and expects to bring it down once the stake sale is completed.

“Of the nine BOT projects, four have been completed, three are under execution and we are at advanced stake of achieving financial closure for others,” he said.

The company is divesting stake in the power arm which is implementing a 1,920-MW Simhapuri thermal power projects in three phases. The phase one of the project of 300 MW was completed and the second phase will be ready by October. This will take the installed capacity to 600 MW.

rishikumar.vundi@thehindu.co.in

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