At A time when questions are being raised over corporate investments, the Jaypee group has received Rs 2,050 crore as a long-term loan for Taj Expressway project. This is in addition to Rs 250-crore equity and Rs 900-crore loan that the bank had earlier agreed to give for the project. With this, the financial closure for Taj Expressway project has been completed.

In all, ICICI Bank will be lending Rs 2,950 crore to Jaypee Infratech for the project, said a Jaypee group executive. The bank had earlier bought 1% equity stake in Jaypee Infratech for Rs 250 crore, valuing the company at Rs 25,000 crore. The Jaypee group's employee trust also holds 1% stake in Jaypee Infratech.

Jaypee Infratech is the SPV created to build and operate six-lane 165-km Taj Expressway, linking Noida with Agra. The company has already got the possession of the entire land required for the construction of the expressway. All necessary approvals, including the environment clearance, for the project have been received, said the company executive, adding that construction work has started on approximately 70 km of the expressway.

Meanwhile, Taj Expressway Authority has decided to rename Taj Expressway as Yamuna Expressway, probably because the name bore similarity with Taj Corridor project — Mayawati's infamous venture in her earlier stint as UP chief minister. Taj Corridor project, which was conceived to build malls around Taj Mahal in Agra, was aborted midway after it attracted nationwide criticism on environmental ground. It is likely that Taj Expressway Authority too may be soon renamed Yamuna Expressway Authority.

Jaypee Infratech has the rights to develop 25 million sq meters of land at five or more locations along the expressway. The land, which will be allotted to Jaypee group at different stages of the implementation of the project, could be used for commercial, amusement, industrial, institutional and residential purposes.

Meanwhile, Jaiprakash Associates is also working on the 1,047-km Ganga Expressway project, which it bagged a few months ago. Jaypee Ganga Infrastructure Corporation will implement the Rs 40,000-crore Ganga Expressway project that links Greater Noida with Ballia in eastern UP.

                           Courtesy: - ET dtd: - July 5, 2008