India-based Madhucon Group subsidiary Madhucon Projects has agreed to sell its 74% stake in the Agra-Jaipur expressway project to Tata Realty and Infrastructure for Rs2.5bn ($39.3m).

The 57km-long Agra-Jaipur expressway was contracted to Madhucon Agra-Jaipur Expressways (MAJEL) on a build, operate and transfer (BOT) basis, Business Standard reported.

MAJEL was established by Madhucon Projects and SREI Infrastructure Finance and the project has a concession period of 25 years, which started in October 2005.

"The company is also planning to sell its complete share in the project after receiving approval from the government."

Citing a senior company official, the report said that this divestment also includes 7% equity held by Srei Infra.

Financial details of the agreement have not been disclosed.

The deal is expected to be completed within two months.

Madhucon chairman Nama Nageshwar Rao was quoted by Business Standard as saying: "It was a strategic sale as we are looking at becoming a debt-free company again in the next one year or so."

The company is also planning to sell its complete share in the project after receiving approval from the government.

Currently, government regulations only allow the sales of a 74% share in BOT projects.

The Agra-Jaipur express stretch is located between Bharatpur and Mahua in Rajasthan.

In 2005, the National Highway Authority of India (NHAI) awarded the project for the widening of the existing two-lane Agra-Jaipur road into a four-lane expressway.

Other companies including IDFC and Piramal had also shown interest to acquire the majority stake in the project.