IRB bags Rs 10,050 crore Jammu & Kashmir tunnel project; shares jump by over 6%

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IRB Infrastructure Developers (IRB Infra) has bagged a Rs 10,050-crore order to construct the Zozila pass tunnel in Jammu & Kashmir.

The company has received a Letter of Award from Ministry of Road Transport and Highways for the construction, operation and maintenance of the longest tunnel in South-East Asia, Zozila pass Tunnel in Jammu & Kashmir (J&K), a statement issued said.

Reacting to the news, shares of the company were trading at Rs 260, up 6.19% around 1030 hours on BSE.

“It is the biggest national highway project awarded in India in terms of project cost with a tunnel length spanning 14.08 km and costing of Rs 10,050 crore,” company’s Chairman and Managing Director Virendra Mhaiskar said.
The scope of the project includes constructing approaches on NH-1 (Srinagar Sonmarg Gumri Road) on design, build, finance, operate and transfer (annuity) basis.

“This project has a strategic and socio-economic importance as it will provide much needed all weather connectivity between J&K and Leh Ladakh, which remains cut off during winter due to heavy snowfall and hence assumes national importance,” he said.

The project also involves construction of tunnel spanning length of 14.08 km and approach road of 10.8 km with three vertical ventilation shafts, snow gallery of 700 meters and avalanche protection measures.

The construction of the tunnel is scheduled to be completed in seven years and the concession period is 22 years.

He further said IRB Infra will receive semi-annual annuity of Rs 981 crore from the government, which will start after completion of construction of the project, twice in a year till the end of the concession period.

With this order, IRB Infra expands its base to the ninth state. The company’s order book now stands at Rs 16,430 crore.

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