ITNL runs into trouble, plans to terminate contracts for Gurgaon Metro

Icra has assigned a default rating to the Rs 7.61-billion debt for Rapid Metro Rail Gurgaon, a subsidiary of ITNL

Not all seems to be good with the Gurgaon Metro project, with the two subsidiaries operating Gurgaon Rapid Metro and Gurgaon Rapid Metro South expected to look for termination of contracts. Three other subsidiaries of IL&FS Transportation Networks (ITNL), the parent company, have also initiated termination of contracts for their respective infrastructure projects.

Debt worth more than Rs 28.50 billion now face a default rating, while debt riding on the five projects anticipating a termination stands at more than Rs 43 billion. Four of the five ITNL subsidiaries have missed the debt repayment cycle for June, forcing rating agencies to