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
Infrastructure Transport

CPCL crosses $10 million revenue milestone

Chaitanya Projects Consultancy (CPCL), a leading infrastructure and engineering consultancy, has surpassed $10 million in annual revenue for FY 2024–25, marking a five-year compound annual growth rate of 28.2 per cent—well above the industry average. Established in 2004, CPCL has delivered over 300 projects across highways, bridges, urban infrastructure, water, transport, and environmental sectors. Its achievements include over 600 km of six-lane highways, 2,000 km of national highways, and 100 major bridges. “Our goal has always been to improve India’s infrastructure,” sai..

Next Story
Resources

KPIL secures new orders worth Rs 37.89 billion

Kalpataru Projects International Ltd (KPIL), a major EPC player in power transmission and civil infrastructure, has secured new orders worth approximately Rs 37.89 billion along with its international subsidiaries. The orders include a significant contract in the Buildings and Factories (B&F) segment in India, marking KPIL’s largest B&F order to date. The project involves the development of over 12 million sq ft of residential space with supporting infrastructure, awarded on a design-build basis. Additionally, the company has won new transmission and distribution (T&D) order..

Next Story
Real Estate

Apartment loading rises to 40 per cent in top cities

Driven by rising demand for premium amenities, the average apartment loading across India’s top seven cities has reached 40 per cent in Q1 2025, up from 31 per cent in 2019, according to ANAROCK Research. The loading factor, or the area paid for beyond the usable carpet area, covers common spaces such as lobbies, staircases, and clubhouses. Mumbai Metropolitan Region (MMR) continues to lead with the highest loading at 43 per cent. Bengaluru saw the sharpest jump, from 30 per cent in 2019 to 41 per cent in Q1 2025. Chennai recorded the lowest average loading at 36 per cent. “Sixty..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?