A group company of debt-ridden IL&FS Friday informed stock exchanges that Gujarat Metro Rail Corporation has terminated a construction contract due to slow progress.
IL&FS Engineering and Construction Company said it has received a letter from the Gujarat Metro Rail Corporation informing about the decision to terminate the contract for construction of viaduct corridor from interface point with Gyaspur Depot.
"Gujarat Metro Rail Corporation may encash BGs (bank gurantees) provided by the company amounting to Rs 37,46,44,257," the IL&FS group company said.
IL&FS group owes over Rs 90,000 crore debt and several of its companies have defaulted on loan repayments.
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