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)

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code