IL&FS receives RS 693 crore for two road projects from NHAI

ITNL, a subsidiary of IL&FS, has received a settlement amount of INR673 crore for Kiratpur Ner Chowk Expressway Limited (KNCEL) and INR20 crore towards claims for Chenani Nashri Tunnelway Limited (CNTL) from the National Highways Authority of India (NHAI), the company said today. According to the IL&FS, with these two projects, NHAI and Ministry of Road Transport and Highways (MoRTH) have settled aggregate IL&FS claims of over INR1,804 crore across six road projects. KNCEL project was foreclosed under MoRTH guidelines of March 2019 for stalled and incomplete projects.

CNTL is a completed project, earning annuities, and INR19.6 crore is the claim amount towards the change of scope. Earlier, Fagne Songadh Expressway Ltd (FSEL), a 100% subsidiary of ITNL, completed its settlement with NHAI under the new MoRTH policy on stuck-up projects receiving an amount of INR707 crore. Other IL&FS projects settled under claims and compensation by NHAI with the New Board till date include: Jorabat Shillong Expressway (JSEL) INR252 crore; Baleshwar Kharagpur Expressway Limited (BKEL) ( INR8 crore); and ITNL Road Infrastructure Development Company (IRIDCL) ( INR144 crore) that was settled by the Ministry of Road Transport and Highways (MoRTH).

There is a pending settlement of INR902 crore for the Khed Sinnar Expressway project and INR171 crore for Amravati Chikli Expressway from NHAI, the company said. “FSEL, KNCEL and IRIDCL have been handed over to the Authorities post-settlement of claims. BKEL will form part of the InVIT that will include 11 Road projects in two phases.

Between FSEL, KNCEL, IRIDCL- IL&FS would be addressing an aggregate debt of INR3,500 crore through NHAI and MoRTH Settlements. As per the Road Transport and Highways Ministry’s guidelines formulated in March 2019, incomplete or stalled projects for various reasons, authorities would be able to foreclose the project’s concession agreement and pay compensation based on the value of work done or 90% of debt due, whichever is lower. According to IL&FS, FSEL and KNCEL have been settled under these guidelines.

IL&FS Group, as part of its Debt Resolution framework approved by NCLAT, is following a multi-pronged strategy for its road assets to address debt. The group also has plans to form InVIT for 12 road projects, settle incomplete projects under MoRTH guidelines and monetise balance road assets to the highest bidder. The company has also received approval from Hon’ble Justice Jain to sell JSEL, an amber company, to Sekura Roads Limited (backed by Edelweiss Infrastructure Yield Plus) that bid INR916 crore for a 100 per cent stake addressing INR1,600 crore debt.

JSEL is a four-lane highway from Jorabat to Shillong on NH-40, which connects Shillong, Mizoram and Tripura with Guwahati. Similarly, Cube Highways and Infrastructure II PTE Limited emerged as the highest bidder, with a bid of INR3,900 crore for a 100% stake in CNTL that would address INR4,910 crore of aggregate debt on completion, said IL&FS.

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