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IRB to Hike Toll By 6-8% on Karnataka Road

  • Road builder IRB Infrastructure Developers to raise toll rates by about 6-8% from April on a project in Karnataka, a top official told Reuters on Friday.The company plans to hike toll rates on Tumkur-Chitradurga road as per the provisions of the concession agreement, its Chairman Virendra D Mhaiskar said."On a fair assumption, the hike would be about 6-8%," Mhaiskar, who is also the managing director, said, adding the company is yet to finalise the exact quantum of increase.
  • IRB Infrastructure has two toll plazas on the Tumkur-Chitradurga stretch on National Highway-4 and collects about Rs 150-160 crore per annum from the project, he said.India had planned to award a record 7,300 km (4,500 miles) of road contracts in fiscal 2011-12 to March, up from 5,083 km in 2010-11, according to National Highways Authority of India data.In February 2011, the company had tied up Rs 831 crore in debt for IRB Tumkur Chitradurga Tollway Pvt Ltd, which was the special purpose vehicle set up for the project.In August 2011, Mhaiskar said at the company's annual general meeting it expects toll revenues to cross 10 billion rupees by end of financial year 2012, a 25 percent jump from the year ago.Shares in the company closed down 3.62% at Rs 174.30 in a weak Mumbai market, which posted its first weekly fall in 2012 on Friday.

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