Financial Services News

IL&FS receives ₹693 crore settlement claims for 2 road projects from NHAI


IL&FS Transportation Networks Ltd (ITNL), a subsidiary of IL&FS, on Sunday said it has received a settlement amount of 673 crore for Kiratpur Ner Chowk Expressway (KNCEL) and 20 crore towards claims for Chenani Nashri Tunnelway (CNTL), from the National Highways Authority of India (NHAI).

The amount was received on March 31, Infrastructure Leasing and Financial Services (IL&FS) said in a statement.

The KNCEL project was foreclosed under the Ministry of Road Transport and Highways (MoRTH) guidelines of March 2019 for incomplete or stalled projects.

CNTL is a completed project, earning annuities, and the 19.6 crore is the claim amount towards change of scope, the statement said.

It said Fagne Songadh Expressway Ltd (FSEL), a 100 per cent subsidiary of ITNL, had earlier completed its settlement with NHAI under the new MoRTH policy on stuck-up projects receiving an amount of 707 crore.

Other IL&FS projects settled under claims and compensation by NHAI till date include Jorabat Shillong Expressway (JSEL) 252 crore; Baleshwar Kharagpur Expressway (BKEL) ( 8 crore); and ITNL Road Infrastructure Development Company (IRIDCL) ( 144 crore) that was settled by MoRTH.

The group further said there is a pending settlement of 902 crore for the Khed Sinnar Expressway project and 171 crore for Amravati Chikli Expressway from NHAI.

FSEL, KNCEL and IRIDCL have been handed over to NHAI and MoRTH post settlement of claims, it said adding that BKEL will form part of the infrastructure investment trust (InvIT) that will include 11 Road projects in two phases.

“Between FSEL, KNCEL, IRIDCL – IL&FS would be addressing an aggregate debt of 3500 crore through NHAI and MoRTH settlements,” the statement said.

The 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.

It has plans to form InvIT for 12 road projects, settle incomplete projects under MoRTH guidelines and monetise balance road assets to the highest bidder.

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