Govt mulls one-time fund infusion into stalled road projects of IL&FS

The infrastructure construction and finance company is also grappling with arbitration claims worth around Rs 70 bn with the NHAI, which are under various stages of resolution

The government might go for one-time fund infusion into the languishing national highway projects of IL&FS, senior officials told Business Standard. They, however, declined to share the proposed fund infusion plan. 

The Ministry of Road Transport and Highways, they added, was not considering a takeover of the firm’s projects via the National Highways Authority of India. IL&FS could sell the completed road projects where tolling is underway independent of any government interference, the officials said. 

Some of the key stalled highway contracts of IL&FS are Barwa Adda-Panagarh (West Bengal), Patna-Gaya-Dobhi (Bihar), Amravati-Chikli (Maharashtra) and Fagne-Maharashtra/ Gujarat border, totalling about 69