IRB Infrastructure Trust Commences Tolling on ₹9,270 Crore Ayodhya Corridor Project
New Delhi: In a significant boost to the country's road infrastructure, IRB Infrastructure Trust, an associate of IRB Infrastructure Developers Limited, has commenced toll operations on the crucial Lucknow-Ayodhya-Gorakhpur corridor. The move comes after the project special purpose vehicle (SPV) paid a massive upfront concession fee of ₹9,270 crore to the National Highways Authority of India (NHAI).
The tolling operations began at the stroke of midnight on January 23, 2026, marking the second consecration anniversary of the Ram Lalla temple in Ayodhya. The timing is symbolic, given the project's connection to the temple town that has seen massive infrastructure development in recent years.
"We are happy to announce the Financial Closure of our TOT-17 Project on the auspicious occasion of the second Consecration Anniversary of Ram Lalla at Shri Ram Mandir, Ayodhya," said Virendra D. Mhaiskar, Chairman and Managing Director of IRB Group.
The TOT-17 bundle comprises two strategically important highway corridors: Lucknow-Ayodhya-Gorakhpur (NH-27) and the Lucknow-Sultanpur stretch of Lucknow-Varanasi (NH-731). The project spans 366 km with a tollable length of approximately 435 km (1,600 lane km) and has a revenue-linked concession period of 20 years. The financial closure was achieved with Union Bank of India as the lead lender, and the ₹9,270 crore concession fee was paid upfront on January 22, 2026.
The project holds immense cultural importance, connecting some of Uttar Pradesh's most revered religious and cultural centers. The corridor is expected to facilitate seamless travel for millions of pilgrims visiting Ayodhya, Varanasi, and other religious sites in the region.
"This corridor has exceptional cultural and spiritual significance as it connects India's most revered religious and cultural cities," Mhaiskar emphasized, adding that it will play a vital role in enabling safe, efficient, and seamless travel for millions of pilgrims and commuters, while contributing meaningfully to regional development.
IRB Infrastructure Trust had emerged as the highest bidder for NHAI's TOT-17 bundle in November 2025, receiving the Letter of Award on November 14. The concession agreement was signed with NHAI on December 12, 2025, paving the way for the swift financial closure and commencement of operations.
With this acquisition, IRB Group has further consolidated its position as India's largest toll road concessionaire. The group now boasts 28 highway assets across 13 Indian states, approximately 17,500 operational lane km, an asset base of approximately ₹94,000 crore, and commands a 44% market share in the awarded TOT space. The scale of IRB's daily operations is staggering, with approximately 1.5 lakh vehicle movements, contributing around 10% to the national toll revenue through 86 toll plazas with 97% FASTag penetration.
The project's financial closure highlights the confidence of international and domestic investors, with the consortium including lead lender Union Bank of India and international partners GIC, Singapore and Ferrovial Group. IRB Infrastructure Trust, listed on the NSE under the ticker "IRBIT", operates 14 highway assets with an enterprise value of approximately ₹66,000 crore. The addition of TOT-17 is expected to significantly boost its revenue streams.
With the weighted average life of its assets at over 20 years, IRB Group is well-positioned to benefit from India's growing highway network. The successful commissioning of TOT-17 reinforces the government's commitment to monetizing highway assets while ensuring continued private sector investment in critical infrastructure. As Ayodhya emerges as a major religious and tourist destination, IRB's timely commencement of toll operations on this critical corridor promises to boost regional connectivity while delivering value to investors and stakeholders alike.