IRB infrastructure Finds Golden Duck in Hyderabad ORR Lease but Beware of this fact !
IRB Infrastructure share price is all set to rise exponentially in the near future if all goes as per the plan. The Maharastra based Infrastructure company has been consistently showing profits and it currently caters the highways which witness the flow of over 1 million vehicles every day. Till April , IRB has around 12 highways under it’s toll collection kitty yielding around 350 Crores of Toll collection officially. The IRB MP express way is the most revenue generating highway route for the company with around 100 crores of collections every month. The Hyderabad Outer ring road toll collections would be Jewel on the crown of IRB adding huge revenue to the existing bushare siness.
The Hyderabad Outer ring road project is not about building the new one but the TOT project. The Project was finished long back and every day the Toll collections surpasses 2.5 Cr rupees. It is a 152 km long stretch ring road covering all sides of the Hyderabad making it one of the best Outer ring roads in the country. It just takes few minutes for any vehicle to reach one side from other side of the city with out entering the city.
The TOT (Toll Operate Transfer ) project was captured for Rs. 7380 Cr rupees for the next 30 years. With a current business of around 2.5 Cr of Toll collections ( Excluding passes fee ) and other maintenance expenses ( Other Businesses to are alleged to be added in coming days like Parking and other facilities via Paid services ) to add more revenue to the company.
This ORR of Hyderabad is estimated to generate around 2.5 lakh crore of revenue in the next 30 years for the company but the investment IRB made is just mere 7.3K cr. This would easily help IRB share price to get doubled very soon.
It is also claimed by the political observants in Telangana that the provision allows the company to rise the toll fee by 7% every year making the Toll fee to get almost doubled in the period of 12 years and the likely hood of increase in number of vehicles every year is surely projecting the exponential figures.
A whooping 25 times revenue generating model in the next 3 decades . But all might not be well for the company as the opposition parties have already made this a big political issue in the state of Telangana.
BJP , Congress, BSP , the Popular Journalists Teenmaar Mallanna and Toli velugu Raghu have made it to the press meets and headlines since a week now explaining the public how many crores the state government would lose every year due to this contract.
IRB – Hyderabad ORR Contract is now being called as one of the biggest Financial Scams in the state of Telangana in the recent times.
Opposition parties and the social activism organisations are all set to knock the Highcourt on this contract. Selling off the Toll project of ORR for just mere 7k crores for next 3 decades is liking losing a milking cow for peanuts , alleged Revanth Reddy the PCC President of Telangana State.
The BSP state President and former IPS officer R.S.Praveen Kumar also alleged in the public meeting today about how the 2.5 lakh Cr generating government asset is sold for cheaper price to IRB and he alleged how the money would change hands behind the curtains.
Since the general elections are nearing and the anti incumbency is rising too fast on the ruling BRS party in Telangana, there are more chances that this contract would be cancelled if the opposition parties or the Journalists knock the Court door.
Popular Journalist Sharath Chandra with Journalist Teenmaar mallanna or the PCC Team lead by Revanth Reddy might File a case in high court very soon.
Therefore, IRB Share holders or the investors must have a close observation on Telangana politics to have a keen understanding on the IRB share price.
IRB share price is likey to rise 2% every year if the Hyderabad ORR TOT lease continues as this is going to be one of the most lucrative revenue point for the infrastructure company.
The IRB Share price is expected to get doubled in next 5 years is all goes well in the HYD -ORR project.
Since the Ruling BRS has no issues in handing over the project to the IRB and it is alleged since years that IRB has strong business and political connections with right wing central government ( It is alleged and also the humongous growth of IRB in last decade indicates ) , there is more scope for the ORR TOT project to continue and IRB too milk billions of rupees on this Toll Collection.
