India-based infrastructure company IVRCL will secure Rs4bn ($60m) from the sale of its three road projects in the state of Tamil Nadu.

The three road projects include Salem Tollways Limited, Kumarapalayam Tollways and Chengapalli Tollways.

Last week, the firm said that sale consideration was much less than the investment value and will lead to total loss of Rs3.27bn ($49m), reported Business Standard.

"The three projects have a debt of Rs15bn."

A senior company official was quoted by the publication as saying: "The three projects have a debt of Rs15bn. The interest costs, about Rs2bn a year, had accrued on the debt due to delay in execution of the deal. This apart, the buyers want an internal rate of return (IRR) of 16% on the projects."

In 2013, IVRCL and Tata Realty and Infrastructure Limited (TRIL) had signed a deal on the sale of stake, but it is currently being executed as ‘all conditions’ to the revised definitive agreement were achieved during the present fiscal year’s second quarter.

Considered to be the project’s special purpose vehicle (SPV), Salem Tollways operates a 53km stretch of National Highway 47, between Salem and Kumarapalayam.

For this purpose, the firm had signed a concession agreement with the National Highways Authority of India (NHAI). It began operations in 2010.

Kumarapalayam Tollways operates a 47km road of NH-47, stretching from Kumarapalayam to Chengapalli.

It began its commercial operation in August 2009.

The third road project is under the build-operate-transfer (BOT) format, and involves a 54.83km stretch of Chengapalli-Coimbatore-Walayar highway.

Chengapalli Tollways secured a provisional certificate for operation from 14 October.