Shapoorji Pallonji sells entire stake in Jammu-Udhampur highway to NIIF

Contract for the project, which connects with Mata Vaishno Devi shrine, allowed the firm to collect a semi-annual sum for 20 years

Shapoorji Pallonji (SP) Group has sold its stake for an undisclosed amount in the Jammu-Udhampur Highway to the state-run National Infrastructure Investment Fund (NIIF) to service its bond market debt.

The group undertook the project through a unit called SP Jammu Udhampur Highway Limited in 2011, after getting the contract to build a 64.5-km highway on a build-operate-transfer (annuity) basis. The concession agreement allowed the firm to collect a pre-agreed semi-annual sum for the next 20 years.

"This transaction also results in an effective reduction of approx. Rs 1,850 crore of consolidated Group debt besides unlocking equity," said Jai Mavani,