Ashoka Buildcon subsidiary raises INR 150 CR. from Morgan Stanley India Infrastructure

Deepthi | Myequity news | Date : 17-12-2018 18:50:00 IST

Ashoka Buildcon Limited (Ashoka) announces an INR 150 crore investment commitment into its city gas distribution (CGD) business Unison Enviro Private Limited (UEPL) by Morgan Stanley India Infrastructure (MSII). UEPL builds and operates CGD networks across cities and towns in India.

UEPL has just started commercial operations of its first CGD project in Ratnagiri district in Maharashtra state. In the recently concluded ninth round of bidding for CGD licences, UEPL has won two additional CGD licenses, one in Latur & Osmanabad, also in Maharashtra, and one in Chitradurga & Davangere in Karnataka state. UEPL will be leveraging Ashoka's strong project execution skills and MSII team's experience in the midstream and downstream gas infrastructure sectors to successfully implement these projects.

Welcoming this investment, Ashok Katariya, Chairman of Ashoka, said: "We are delighted to announce this partnership with Morgan Stanley India Infrastructure to build a nationwide city gas distribution business. We commend the Government's focus on increasing the share of natural gas in the overall energy mix as it is a clean and green fuel. The gas sector will see tremendous growth in the coming years and this partnership has come at the right time to take advantage of this transformational shift in India's energy mix."

Satish Parakh, Managing Director of Ashoka, added: "Ashoka has consistently sought growth opportunities that leverage the company's proven project execution skills. Within a short time, UEPL has already commenced operations in Ratnagiri district. This investment from MSII will allow us to expand our footprint."

Shyamsundar Gurumoorthy, Managing Director at MSII,
commented: "We are proud to partner with Ashoka. The combination of supportive government policy, vast investment opportunities and Ashoka's recognized execution expertise, position UEPL well for the future. We are excited to build a best-in-class distribution business with our partner Ashoka."

About Ashoka Buildcon:

Ashoka Buildcon Ltd, a road infrastructure company, builds and operates roads and bridges in India on a build, operate and transfer (BOT) basis. The company operates one of the highest number of toll-based BOT projects in India. In addition to BOT project, they design and procure the raw materials and equipment for and construct roads, bridges, distribution transformers, electricity substations, commercial buildings, industrial buildings and institutional buildings for third parties as well as perform maintenance for third parties.

More from Myequity