IL&FS Group company ITNL Road Infrastructure Development Company Limited (IRIDCL) has entered into a tripartite agreement with the Ministry of Road Transport and Highways (MoRTH) and the project lenders for foreclosure of the Beawer-Gomti Road Concession Agreement.

IRIDCL is a subsidiary of ITNL, which in turn is a subsidiary of IL&FS. As part of this agreement, IRIDCL will receive a settlement amount of ₹144.08 crore within a week from the date of agreement, post which the toll operations will be handed over to MoRTH, IL&FS said.

The settlement with the project lenders was done through Union Bank of India, the lead bank.

In 2009, IL&FS had signed a concession agreement with MoRTH for development and operation of the existing two-lane road covering a stretch of approximately 116.433 km on the Beawar-Gomti section of National Highway No. 8 in Rajasthan on Design, Build, Finance, Operate, Toll (DBFOT) basis. The concession agreement also provided for undertaking the four-laning of the project by the concessionaire, namely, ITNL Road Infrastructure Development Company. The concession period for the project was extended to 30 years from the appointed date, i.e. October 28, 2009.

In its recently-concluded 32nd AGM, Chairman Uday Kotak, in his maiden address assured shareholders that around ₹45,000 crore can be recovered under very complex circumstances. IL&FS owes around ₹90,000 crore. Since then, IL&FS has sought Expression of Interest (EoI) for acquiring its entire stake in GRICL Rail Bridge Development Company Ltd (GRBDCL). Additionally, IL&FS has received a binding offer from a prospective buyer for acquiring its complete stake in IL&FS Environmental & Infrastructure Services Limited (IEISL).

Related Topics
comment COMMENT NOW