Adani Group is anticipated to obtain a Rs 12,000 billion loan from SBI to finance the Ganga Expressw



The State Bank of India (SBI) and Gautam Adani's conglomerate, Adani Group, are in talks to raise approximately Rs 12,000 crore in long-term project loans that will be used to construct the greenfield Ganga Expressway, which will connect Meerut and Prayagraj, India's largest-ever expressway project. The Uttar Pradesh government awarded contracts to Adani Enterprises (AEL) in December of last year for the construction of three portions of the 594-km Ganga Expressway.


According to sources with knowledge of the situation, ET said that SBI is conducting a road traffic survey before deciding on loan terms. Phase 1 (594 km) of the six-lane, expandable to eight-lane Ganga Expressway from Meerut to Prayagraj is owned by the firm in the greatest proportion.


Even though the details have not yet been decided, the loan will have a longer duration, maybe between 10 and 30 years. According to the financial daily, the loan, if granted, may be provided at an interest rate in the high single-digit range of 7-9%, and the bank could down-sell portions of the entire loan to other regional banks.

According to a source who spoke to ET, "The bank is doing a survey on road traffic with the assistance of an external agency, which might be one of the Big Four businesses." This survey will aid in forecasting the possible toll revenues that the project may provide after it is finished. This will therefore determine the bank's debt-to-equity ratio. Therefore, the equity share will decrease if the toll collection has a higher potential for toll collection. If there are no parallel roads, the debt-to-equity ratio can be as high as 80:20, which increases the likelihood that more toll money will be collected.


The Hapur, Bulandshahr, Amroha, Sambhal, Badaun, Shahjahanpur, Hardoi, Unnao, Rae Bareli, Pratapgarh, and Prayagraj districts would be connected by the 594-kilometer expressway. It will begin in the Meerut village of Bijauli and finish close to Judapur Dandu in Prayagraj.


In addition, the Expressway would boost several industries, including trade, agriculture, tourism, and industrial development, according to a statement issued by the Prime Minister's Office.


6,500 hectares of land will be used to build the Ganga Expressway. AEL's three awards are expected to cost Rs 17,000 crore.


Adani Enterprises would reportedly invest more than Rs 55,000 crore in new energy, airports, and roads over the coming years, according to reports from earlier this year.


Resources, Transport and Logistics, Utility, and Strategic are the company's four verticals. Adani Enterprises (AEL), which describes itself as an "incubator on building varied new enterprises," has four verticals. The company has previously stated that the road segment, which is a component of its Transport and Logistics vertical, will witness the highest capital spending over the next 5 to 6 years.

Adani Enterprises Ltd. (AEL), a subsidiary of the Adani Group, reported a combined net profit attributable to owners of Rs 304.32 crore for the three months ended March 31, 2022. AEL's consolidated net profit attributable to shareholders for the quarter ended March 31, 2021, in the prior fiscal year increased by 30% year over year (YoY), to Rs 233.95 crore. According to AEL's filings with stock exchanges, its consolidated revenue increased by 83.66% in the fourth quarter of FY22 to Rs 25,141.56 crore from Rs 13,688.95 crore the previous quarter.


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