+
IL&FS files writ petition seeking Rs 7.75 billion from GOJ
ECONOMY & POLICY

IL&FS files writ petition seeking Rs 7.75 billion from GOJ

IL&FS has lodged a writ petition with the Ranchi High Court, urging the Jharkhand government to release Rs 7.75 billion in pending annuities and interest. This plea stems from an agreement between IL&FS and the state government for the Jharkhand Accelerated Road Development Project, a joint venture aimed at developing five roads. Despite the agreement, IL&FS claims that the state government has failed to disburse the annuity of Rs 7.75 billion, including interest, owed to the company on a semi-annual basis, as stated in the petition.

The concession agreements, signed between 2009 and 2011, focused on the construction and maintenance of road projects across Jharkhand, covering a total of 1,500 km under a public-private partnership on a build-operate-transfer (BOT) basis. The agreements encompassed various projects, such as the Ranchi Ring Road, Ranchi Patratu Dam Road, Patratu Dam-Ramgarh Road, Chaibasa-Kandra Chowk Road, and Adityapur-Kandra Road.

The construction period, initiated upon agreement signing, involved activities like securing financing, subcontractor engagement, and construction preparation. Following construction completion, an operational period of 15 years commenced, during which IL&FS was tasked with road operation and maintenance. Financing for construction primarily relied on debt funding from creditors and equity from promoters.

According to IL&FS's petition, semi-annual annuities, fixed sums payable twice a year during the operational period, amounted to Rs 580 million for the first project, Rs 250 million for the second, and Rs 310 million for the third. IL&FS maintains that there were no delays beyond the extended scheduled completion dates, thus refuting any grounds for annuity reductions. An independent consultant also affirmed that no reductions were recommended for the outstanding annuities being withheld by the government, as stated in the petition. (ET Infra)

IL&FS has lodged a writ petition with the Ranchi High Court, urging the Jharkhand government to release Rs 7.75 billion in pending annuities and interest. This plea stems from an agreement between IL&FS and the state government for the Jharkhand Accelerated Road Development Project, a joint venture aimed at developing five roads. Despite the agreement, IL&FS claims that the state government has failed to disburse the annuity of Rs 7.75 billion, including interest, owed to the company on a semi-annual basis, as stated in the petition. The concession agreements, signed between 2009 and 2011, focused on the construction and maintenance of road projects across Jharkhand, covering a total of 1,500 km under a public-private partnership on a build-operate-transfer (BOT) basis. The agreements encompassed various projects, such as the Ranchi Ring Road, Ranchi Patratu Dam Road, Patratu Dam-Ramgarh Road, Chaibasa-Kandra Chowk Road, and Adityapur-Kandra Road. The construction period, initiated upon agreement signing, involved activities like securing financing, subcontractor engagement, and construction preparation. Following construction completion, an operational period of 15 years commenced, during which IL&FS was tasked with road operation and maintenance. Financing for construction primarily relied on debt funding from creditors and equity from promoters. According to IL&FS's petition, semi-annual annuities, fixed sums payable twice a year during the operational period, amounted to Rs 580 million for the first project, Rs 250 million for the second, and Rs 310 million for the third. IL&FS maintains that there were no delays beyond the extended scheduled completion dates, thus refuting any grounds for annuity reductions. An independent consultant also affirmed that no reductions were recommended for the outstanding annuities being withheld by the government, as stated in the petition. (ET Infra)

Next Story
Technology

Six ways a smarter workflow leads to faster, more accurate bids

In today’s fast-paced civil construction environment, estimators need more than just solid numbers. They need smart, streamlined processes. This article explores six key ways connected workflows can transform the estimated approach, help in minimising risk, move faster, and improve accuracy. By integrating tools, data, and teams, one can produce stronger bids with less rework, fewer surprises, and more confidence. As an estimator, the job goes beyond producing numbers. They are responsible for delivering bids that are fast, accurate, and built to win. In today’s civil construction ind..

Next Story
Real Estate

Experion Launches Women-Only Co-Living Project in Greater Noida

Experion, part of Singapore-based AT Capital Group, has launched its first co-living space under its managed rental housing brand, VLIV, in Greater Noida. The all-women residence features 730 twin-sharing beds with a strong focus on safety, comfort, and well-being. VLIV has committed a $300 million investment to create a structured, service-led rental housing ecosystem in India. The brand aims to scale up to 20,000 beds in the next few years, with a long-term target of 100,000 beds nationwide. “India’s rental housing is fragmented. VLIV is our way of building long-term, dependabl..

Next Story
Infrastructure Urban

Officine Maccaferri Acquires CPT to Bolster Tunnelling Tech

Ambienta’s platform company, Officine Maccaferri S.p.A., has acquired CPT Group, a leading Italian developer of robotic prefabrication systems and digital control technologies for mechanised tunnelling. The move positions Maccaferri as a global player in integrated tunnelling solutions, blending traditional and advanced mechanised systems. Based in Nova Milanese, CPT serves major global contractors across Europe, Southeast Asia, and Australia. The company offers robotic prefabrication (Robofactory), productivity-monitoring software for Tunnel Boring Machines (TBMs), and eco-designed spa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?