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Om Metals seeks Rs 523cr termination compensation from Raj gov

Press Trust of India  |  Mumbai 

Om Metals Infraprojects' Thursday said its special purpose vehicle (SPV) Toll Road Ltd (BJTR) has sought termination compensation of Rs 523 crore from the government.

BJTR, which was formed to execute road projects, served a termination notice to the government citing material default, a company statement said.

As per the termination clause 37.3.2 of concession agreement, the government of is liable to pay complete debt due on the project and 150 per cent of the adjusted equity.

The has to pay 1.5 times of equity, debt and compensation as permitted in the concession agreement.

Total claim sought by BJTR is Rs 523 crore out of which lenders outstanding dues is Rs 205 crore, according to the release.

The project is operational since December 2014. From April 2018, the private vehicles were made toll free by the and the company was exploring with NHAI to convert the state highway into a national highway.

BJTR had received this project for the development of a two-lane road from to via Malpura, Kekri and Shahpura (SH-12) on DBFOT (design, built, finance, operate and transfer) basis through PPP model.

It has also been talking to the for allowing compensation for loss on account of exempted vehicles.

This SPV, where Om Metals has 49 per cent stake, had completed the development of 212 km road project of Jaipur-stretch on build-operate-transfer (BOT) basis and commercial operation date (COD) achieved in December, 2014. Om Metals has executed 100 per cent of engineering procurement and construction (EPC) work for a total project cost of Rs 410 crore.

Commenting on the development Vikas Kothari, president and director of said, "With this development there would be realisation of deployed cash flow into company."

"We will be able to take up more large projects in our core area of irrigation and hydro-mechanical projects. This would spur the growth rates in our business in the years to come," he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, October 11 2018. 20:20 IST