ITNL, a subsidiary of IL&FS, received from the National Highways Authority of India (NHAI) on March 31, 2021 the settlement amount of Rs 673 crore for Kiratpur Ner Chowk Expressway (KNCEL) and Rs 20 crore for claims for Chenani Nashri Tunnelway ( CNTL) received ).

With these two projects, NHAI and MoRTH have settled a total of IL&FS claims in excess of Rs 1,804 crore across 6 road projects.

The KNCEL project was ruled out under Ministry of Roads and Motorways (MoRTH) guidelines of March 2019 due to stalled and incomplete projects. CNTL is a completed project earning pensions and the Rs 19.6 crore is the scope change claim amount.

Earlier, Fagne Songadh Expressway Ltd (FSEL), a wholly owned subsidiary of ITNL, had finalized its settlement with NHAI under the new MoRTH deadlocked project policy for an amount of Rs 707 crore.

Other IL&FS projects settled to date in NHAI claims and compensation with the new board include: Jorabat Shillong Expressway (JSEL) Rs 252 crore; Baleshwar Kharagpur Expressway (BKEL) (Rs 8 crore); and the ITNL Road Infrastructure Development Company (IRIDCL) (Rs 144 crore), which was billed by the Department for Roads and Motorways (MoRTH).

FSEL, KNCEL and IRIDCL were handed over to the authorities after the claims had been settled. BKEL will be part of the InVIT, which will include 11 road projects in two phases.

Between FSEL, KNCEL, IRIDCL – IL&FS a total debt of Rs 3500 crore would be addressed by NHAI and MoRTH settlements.

According to the Ministry of Roads and Motorways’ guidelines formulated in March 2019, if projects were incomplete or stalled for various reasons, the authorities could terminate the project’s concession agreement and pay compensation based on the value of the work performed or 90 percent of the debt due. which is lower.

FSEL and KNCEL were billed according to these guidelines.

IL&FS Group is pursuing a multi-pronged strategy for its road assets to manage debt as part of its NCLAT-approved debt resolution framework. The group has plans to set up InVIT for 12 road projects, settle incomplete projects under MoRTH guidelines and monetize the remaining road inventory to the highest bidder. There is a pending agreement of Rs 902 crore for Khed Sinnar Expressway project and Rs 171 crore for NHAI’s Amravati Chikli Expressway.

The company has received approval from the Honorable Judge Jain to sell JSEL, an amber company, to Sekura Roads (backed by Edelweiss Infrastructure Yield Plus) which has bid Rs 9.16 billion for a 100 per cent stake to clear debt of of Rs. 1,600 crore to be addressed. JSEL is a four lane highway from Jorabat to Shillong on the NH-40, connecting Shillong, Mizoram and Tripura to Guwahati.

Similarly, Cube Highways & Infrastructure II PTE emerged as the highest bidder with a Rs.3,900 crore bid for a 100 per cent stake in CNTL which would cover total debt of Rs.4,910 crore when completed.

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(This story was not edited by Business Standard staff and is automatically generated from a syndicated feed.)

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