IFCI initiates sale of Barwa Adda Expressway project loan
ROADS & HIGHWAYS

IFCI initiates sale of Barwa Adda Expressway project loan

IFCI is in the process of selling a rupee term loan associated with the Barwa Adda Expressway project, with the aim of recovering 45% of the debt. The lender has offered the Rs 2.90 billion debt for sale, setting a reserve price of Rs 1.30 billion based on a binding offer from Asset Care & Reconstruction Enterprise Limited (ACRE) ARC. This cash-based offer is supported by Neo Asset Management.

Currently, three potential buyers are competing for the debt, including Prudent ARC and Asset Reconstruction Company India (ARCIL), in addition to ACRE ARC with Neo Asset Management. Prudent ARC and ARCIL have submitted expressions of interest and are currently conducting due diligence. They may choose to submit a binding offer during the Swiss Challenge process.

IFCI intends to proceed with the auction, building on ACRE ARC's existing offer along with Neo Asset Management. As the anchor bidder, IFCI will have the opportunity to match the highest bid. Two bidders expressed their interest on August 31, and the Swiss auction is scheduled for September 21.

Spokespeople for IFCI, ACRE ARC, and ARCIL did not provide immediate responses, while Neo Asset Management, Prudent ARC, and IL&FS declined to comment.

The Barwa Adda Expressway project is responsible for the development, maintenance, and administration of the six-lane Barwa Adda to Panagarh section of NH-2, including the construction of the Panagarh Bypass, in Jharkhand and West Bengal. This project falls under Phase V of the National Highways Development Plan, as detailed on the IL&FS website.

The Barwa Adda Expressway, holding a total of Rs 12.69 billion in senior loans, is currently embroiled in a dispute among lenders, which has caused delays in the resolution process.

IFCI is in the process of selling a rupee term loan associated with the Barwa Adda Expressway project, with the aim of recovering 45% of the debt. The lender has offered the Rs 2.90 billion debt for sale, setting a reserve price of Rs 1.30 billion based on a binding offer from Asset Care & Reconstruction Enterprise Limited (ACRE) ARC. This cash-based offer is supported by Neo Asset Management.Currently, three potential buyers are competing for the debt, including Prudent ARC and Asset Reconstruction Company India (ARCIL), in addition to ACRE ARC with Neo Asset Management. Prudent ARC and ARCIL have submitted expressions of interest and are currently conducting due diligence. They may choose to submit a binding offer during the Swiss Challenge process.IFCI intends to proceed with the auction, building on ACRE ARC's existing offer along with Neo Asset Management. As the anchor bidder, IFCI will have the opportunity to match the highest bid. Two bidders expressed their interest on August 31, and the Swiss auction is scheduled for September 21.Spokespeople for IFCI, ACRE ARC, and ARCIL did not provide immediate responses, while Neo Asset Management, Prudent ARC, and IL&FS declined to comment.The Barwa Adda Expressway project is responsible for the development, maintenance, and administration of the six-lane Barwa Adda to Panagarh section of NH-2, including the construction of the Panagarh Bypass, in Jharkhand and West Bengal. This project falls under Phase V of the National Highways Development Plan, as detailed on the IL&FS website.The Barwa Adda Expressway, holding a total of Rs 12.69 billion in senior loans, is currently embroiled in a dispute among lenders, which has caused delays in the resolution process.

Next Story
Infrastructure Energy

GAIL to Set Up Bengaluru CBG Plant Under New Concession Pact

GAIL (India) Limited has signed a 20-year concession agreement with the Bengaluru City Municipal Corporation (BBMP) to set up a compressed biogas (CBG) plant in the city. The project, expected to produce around 10 tonnes of CBG daily, will utilise municipal solid waste as feedstock, contributing to clean energy generation and efficient waste management. The CBG produced will be used in GAIL’s City Gas Distribution network to promote cleaner fuel usage. The initiative aligns with the government’s Sustainable Alternative Towards Affordable Transportation (SATAT) scheme and GAIL’s broader ..

Next Story
Infrastructure Energy

Uttarakhand HC Lifts 31-Year Ban on ONGC’s Contractual Hiring

The Uttarakhand High Court has lifted a 31-year-old ban on the Oil and Natural Gas Corporation (ONGC) from hiring contractual workers, a restriction imposed in 1993. The decision enables ONGC’s Dehradun establishment to employ personnel on a contractual basis to meet operational requirements. The long-standing prohibition had limited ONGC’s ability to fill vacancies in its technical and administrative departments, often leading to project delays and higher dependence on outsourcing. With the court’s directive, the public sector enterprise can now proceed with temporary recruitments whil..

Next Story
Infrastructure Energy

JSW Energy’s Utkal Unit Bags 400 MW, 25-Year Power Supply Deal

JSW Energy Limited announced that its subsidiary, JSW Energy (Utkal) Limited, has secured a Letter of Award (LoA) from Karnataka’s Power Company of Karnataka Limited (PCKL) for the supply of 400 MW of electricity for 25 years. The agreement is part of a competitive bidding process for long-term procurement of power to meet the state’s growing energy demand. The 400 MW capacity will be supplied from JSW Energy’s upcoming thermal power project in Odisha. This development strengthens JSW Energy’s presence in the southern market and aligns with its strategy to enhance long-term contracte..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?