Hindustan Construction Co Ltd (HCC) is planning to tie up with international players to bid and develop mega-expressways that the ministry for road transport & highways will award in 2010.

“We have not tied up (with any player), but are in the process of talking to various people,” said Praveen Sood, group chief financial officer, HCC. 

The ministry plans to award around six mega-expressway projects with a cost of around Rs5,000 crore for each mega-expressway.

“There are two to three parties that have already shown interest in these projects. These investments would be at a special purpose vehicle (SPV) level,” said Arjun Dhawan, president, HCC Infrastructure.

As these projects will require huge investments and expertise, HCC is planning partnerships both for finance and operations. “There are two types of people whom we are talking to. One would be for financial tie-ups. These (partnerships) would be with players who would invest in the project with expectations of returns of roughly 20% and they would typically not be taking part in operations,” said Mr Sood.

He further said that the second type would involve players who may want a joint venture with HCC or operations and management (O&M) players, who would contribute to the operational aspects of these projects.

“Thus, two kinds of partners will come in—one at the level of the project and the other at the level of the holding company,” added Mr Sood.

Speaking on the timeline for awarding the mega-expressways, Mr Sood said, “There has been some announcement in the pipeline, but no major decision has been taken so far.”

HCC is also planning to have separate ventures with various players for each mega-expressway.
— Amritha Pillay