+
NARCL bids Rs 2.7 bn for Pink City Eway, 15% recovery expected
ECONOMY & POLICY

NARCL bids Rs 2.7 bn for Pink City Eway, 15% recovery expected

The National Asset Reconstruction Co (NARCL), a bad loan aggregator supported by the government, has presented a Rs 2.70 billion proposal for Pink City Expressway (PCEPL). PCEPL was established to construct, operate, and maintain the six-lane Gurugram-Kotputli-Jaipur section of the Delhi-Jaipur highway.

According to the rating agency Care, PCEPL holds Rs 17.61 billion in outstanding loans and Rs 30 million in bank guarantees. This implies that lenders can recover approximately 15% of their claims from NARCL.

The process involves the bad bank acquiring loans by paying 15% of the amount in cash and the remainder in security receipts (SRs). These SRs are to be matched with recovery over time and are guaranteed by the government for five years. They can be invoked by banks in case of resolution or liquidation of the bad loan.

A person familiar with the process, speaking on condition of anonymity, stated, "The PCEPL offer was finalised last week after NARCL completed all its financial and legal due diligence. Individual banks have to approve the transaction for it to be completed." About a dozen banks, with IDBI Bank at the forefront and including Canara Bank, IFCL, and State Bank of India (SBI), are lenders to the project.

This offer marks the first from NARCL to banks in over four months and the first since changes in the top management of the bad bank. Diwakar Gupta, former SBI managing director, assumed the position of NARCL chairman in early December, succeeding Karnam Sekar, who resigned in August due to differences over the institution's functioning.

The National Asset Reconstruction Co (NARCL), a bad loan aggregator supported by the government, has presented a Rs 2.70 billion proposal for Pink City Expressway (PCEPL). PCEPL was established to construct, operate, and maintain the six-lane Gurugram-Kotputli-Jaipur section of the Delhi-Jaipur highway. According to the rating agency Care, PCEPL holds Rs 17.61 billion in outstanding loans and Rs 30 million in bank guarantees. This implies that lenders can recover approximately 15% of their claims from NARCL. The process involves the bad bank acquiring loans by paying 15% of the amount in cash and the remainder in security receipts (SRs). These SRs are to be matched with recovery over time and are guaranteed by the government for five years. They can be invoked by banks in case of resolution or liquidation of the bad loan. A person familiar with the process, speaking on condition of anonymity, stated, The PCEPL offer was finalised last week after NARCL completed all its financial and legal due diligence. Individual banks have to approve the transaction for it to be completed. About a dozen banks, with IDBI Bank at the forefront and including Canara Bank, IFCL, and State Bank of India (SBI), are lenders to the project. This offer marks the first from NARCL to banks in over four months and the first since changes in the top management of the bad bank. Diwakar Gupta, former SBI managing director, assumed the position of NARCL chairman in early December, succeeding Karnam Sekar, who resigned in August due to differences over the institution's functioning.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Next Story
Infrastructure Transport

UP Approves Two Expressways And Rs 240 bn Infrastructure Push

The Uttar Pradesh Cabinet approved a series of infrastructure and industrial investment proposals totalling Rs 240 billion (Rs 240 bn), including two major expressway projects, a manufacturing and logistics cluster in Sultanpur and incentives for 11 industrial projects across the state. The decisions, taken at a meeting chaired by Chief Minister Yogi Adityanath, underline the state government’s focus on expanding road connectivity around emerging industrial hubs while attracting manufacturing investment to districts beyond major urban centres. The approvals cover both greenfield expressway c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code