IL&FS receives Rs 693 cr settlement claims for two road projects from NHAI

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

ITNL, a subsidiary of IL&FS, has duly received a settlement amount of Rs 673 crore for Kiratpur Ner Chowk Expressway Limited (KNCEL) and Rs 20 crore towards claims for Chen Nashri Tunnelway Limited (CNTL) from the National Highways Authority of India (NHAI).

According to the IL&FS, with these two projects, NHAI and MoRTH have settled aggregate IL&FS claims of over Rs 1,804 crore across 6 road projects.

KNCEL project was foreclosed under the Ministry of Road Transport and Highways (MoRTH) guidelines of March 2019 for stalled and incomplete projects. CNTL is a completed project, earning annuities, and Rs 19.6 crore is the claim amount towards the change of scope.

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

Other IL&FS projects settled under claims and compensation by NHAI with the New Board till date include: Jorabat Shillong Expressway (JSEL) Rs 252 crore; Baleshwar Kharagpur Expressway Limited (BKEL) (Rs 8 crore); and ITNL Road Infrastructure Development Company (IRIDCL) (Rs 144 crore) that was settled by the Ministry of Road Transport and Highways (MoRTH).

There is a pending settlement of Rs 902 crore for the Khed Sinnar Expressway project and Rs 171 crore for Amravati Chikli Expressway from NHAI, read the release.

"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 Rs 3,500 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 per cent 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.

According to the company's release, the group has plans to form InVIT for 12 road projects, settle incomplete projects under MoRTH guidelines and monetise balance road assets to the highest bidder.

It said the company has got approval from Hon'ble Justice Jain to sell JSEL, an amber company, to Sekura Roads Limited (backed by Edelweiss Infrastructure Yield Plus) that bid Rs 916 crore for a 100 per cent stake addressing Rs 1,600 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 Rs 3,900 crore for a 100 per cent stake in CNTL that would address Rs 4,910 crore of aggregate debt on completion, IL&FS's release said.

( With inputs from ANI )