Hungund Hospet Highways Private Limited

Hungund Hospet Highways Private Limited is an SPV promoted by OSE Group (Oriental Structural Engineers Private Limited). In June 2019,  in the SPV to the Oriental Infratrust (OIT), an Infrastructure Investment Trust (InvIT) floated by the OSE group.

The SPV was established for the four/six-laning of Hungund-Hospet stretch on the Mangalore-Solapur section of National Highway 13 in Karnataka on design-build-finance-operate-transfer (DBFOT) toll basis. The project was awarded by the National Highway Authority of India (NHAI) to the consortium of GIL-OSE on the basis of the lowest positive grant of Rs. 340.92 crore quoted by it, with a concession period of 19 years starting from September 2010. The total project cost was Rs. 1,650.92 crore, which was funded by promoter’s equity of Rs. 230-crore grant from NHAI of Rs. 340.92 crore, and Rs. 1,080 crore of senior debt, translating into a debt-equity ratio of around 1.89:1. The project highway has a total length of 98.4 km. The company achieved complete COD on May 14, 2014, when all three toll plazas became operational. Partial tolling on two toll plazas started on November 23, 2012, and post-May 2014, 3 toll plazas have been operational.