Karnataka Bank Limited and Karur Vysya Bank Limited provided project financing facilities to Mysore Kushalnagara Highways Private Limited, a special purpose vehicle set up by D. Y. Uppar & Sons, for the construction of the access controlled four lane highway, on a hybrid annuity model, forming part of the package 2 of the Mysore Kushalnagara section of National Highway 275 from km 122.200 near Guddehosur – Kushalnagara Bypass to km 144.900 at SH-21 Hassan – Periyapatna Road Junction.

The access controlled four lane highway forms part of the Mysore Madikeri Economic Corridor which will connect Mysore and Coorg as a part of the Bharatmala Pariyojana Phase I. The Mysore Madikeri Economic Corridor, also known as Mysore Madikeri Expressway, is, in turn, envisaged to connect with the Bangalore Mysore Expressway. The foundation stone of the Mysore Madikeri Economic Corridor was laid by Prime Minister Narendra Modi in 2023.

The transaction was structured innovatively with various undertakings and guarantees provided by the promoters, partnership firm D. Y. Uppar & Sons, and KMC Constructions Limited, in addition to the regular project securities.

Krishnamurthy & Co. (KLaw) advised Karnataka Bank Limited and Karur Vysya Bank Limited, as the lenders’ legal counsel, and was involved in structuring the transaction, drafting, negotiating, and finalising the financing and security documents. KLaw has also been involved in liaising with the National Highway Authority of India in connection with various legal and regulatory issues in connection with the closing of the financing for the project.

The transaction was led by Partner, Zeeshan Khan and assisted by Anirban Roy Choudhury (Senior Associate) and team of associates.

Indus Law advised certain entities from the borrower side.