An arm of IL&FS has received Rs 1,804 crore as claim settlement from the National Highways Authority of India (NHAI). This will help the subsidiary address its Rs 3,500-crore debt.
“The NHAI and ministry of road transport and highways have settled aggregate IL&FS claims of over Rs 1,804 crore across six road projects,” said an official statement.
IL&FS Transportation Networks (ITNL), a subsidiary of IL&FS, on March 31, 2021, received a settlement amount of Rs 673 crore for Kiratpur Ner Chowk Expressway (KNCEL) and around Rs 20 crore towards claims for Chenani Nashri Tunnelway (CNTL) from NHAI. The KNCEL project was foreclosed under the ministry of road transport and highways guidelines of March 2019 for incomplete or stalled projects.
Chenani Nashri is a completed project, earning annuities, and the Rs 19.6 crore is the claim amount towards change of scope.
Earlier, Fagne Songadh Expressway (FSEL), a 100 per cent subsidiary of ITNL, completed its settlement with NHAI under the new road ministry policy on stuck up projects, receiving an amount of Rs 707 crore.
Other IL&FS projects settled under claims and compensation by the NHAI till date include: Jorabat Shillong Expressway (JSEL) Rs 252 crore; Baleshwar Kharagpur Expressway (BKEL) (Rs 8 crore); and ITNL Road Infrastructure Development Company (IRIDCL) (Rs 144 crore) that was settled by the road ministry.
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.
FSEL, KNCEL and IRIDCL have been handed over to the authorities after settlement of claims. Baleshwar Kharagpur will form a part of the Infrastructure Investment Trust that will include 11 road projects in two phases.
The statement said, among FSEL, KNCEL and IRIDCL, IL&FS would be addressing an aggregate debt of Rs 3,500 crore through the NHAI and ministry of road transport and highways settlements.
According to the ministry’s guidelines in March 2019, for incomplete or stalled projects, authorities would be able to foreclose the project’s concession agreement.