IL&FS seeks higher bid for Chenani-Nashri Tunnel project in J&K

11 Nov 2021 CW Team

CNTL is a subsidiary of IL&FS Transportation Networks, which had inked a Rs 3,900-crore share purchase deal with Cube in August 2020 but regulatory, involving NCLT and NHAI, permissions came late, leading to the agreement getting expired this August.

The tunnel, which reduces the travel time between Jammu and Srinagar by 31 km, was placed on the block in December 2018 after the parent IL&FS went bankrupt two months back.

The two-lane Chenani-Nashri tunnel was commissioned with a project value of Rs 5,269 crore in March 2017, with a concession term up to March 2032. The project received more than 24 bidders, and Cube's Rs 3,900 crore proposal was the highest. They confirm that the CNTL-Cube share purchase agreement has lapsed, and the updated fair price is higher than the earlier estimate.

The past valuation was done in 2018 and under pressure, but since then the collection from the tunnel traffic has updated and so is the debt resolution progress at IL&FS. The agreement expired not because of higher valuation or something else but because of setbacks in getting the necessary permissions.

A reply from Cube, which has created many India-related investments in infrastructure, is expected. Cube has already written to the government-appointed IL&FS board headed by banker Uday Kotak, marginally updating its proposal and asking for an extension of the share sale agreement timelines. Cube has additionally presented its revamped offer to the NCLT for permission. But the new bid is too marginal, and the board is likely to reject it.

Last week, the managing director of IL&FS Group, CS Rajan, had hinted that the group was assessing all options for a better cost. The options that can be assessed cover rebidding, invit, or a new agreement with Cube at updated valuation.

The board is assessing all available options, comprising updated value by Cube, to guarantee optimum realisation for all group creditors as per the approved resolution framework.

Image Source

Also read: J&K undertakes roadworks worth Rs 1.5 lakh cr: Nitin Gadkari

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

IL&FS, which had sold the Chenani-Nashri Tunnel (CNTL) project in J&K to Cube Highways & Infrastructure last December for Rs 3,900 crore, is looking for a new buyer or an updated proposal from the Singaporean highways player after the sale pact expiry and also a rise in valuation that has jumped to more than Rs 5,200 crore now. CNTL is a subsidiary of IL&FS Transportation Networks, which had inked a Rs 3,900-crore share purchase deal with Cube in August 2020 but regulatory, involving NCLT and NHAI, permissions came late, leading to the agreement getting expired this August. The tunnel, which reduces the travel time between Jammu and Srinagar by 31 km, was placed on the block in December 2018 after the parent IL&FS went bankrupt two months back. The two-lane Chenani-Nashri tunnel was commissioned with a project value of Rs 5,269 crore in March 2017, with a concession term up to March 2032. The project received more than 24 bidders, and Cube's Rs 3,900 crore proposal was the highest. They confirm that the CNTL-Cube share purchase agreement has lapsed, and the updated fair price is higher than the earlier estimate. The past valuation was done in 2018 and under pressure, but since then the collection from the tunnel traffic has updated and so is the debt resolution progress at IL&FS. The agreement expired not because of higher valuation or something else but because of setbacks in getting the necessary permissions. A reply from Cube, which has created many India-related investments in infrastructure, is expected. Cube has already written to the government-appointed IL&FS board headed by banker Uday Kotak, marginally updating its proposal and asking for an extension of the share sale agreement timelines. Cube has additionally presented its revamped offer to the NCLT for permission. But the new bid is too marginal, and the board is likely to reject it. Last week, the managing director of IL&FS Group, CS Rajan, had hinted that the group was assessing all options for a better cost. The options that can be assessed cover rebidding, invit, or a new agreement with Cube at updated valuation. The board is assessing all available options, comprising updated value by Cube, to guarantee optimum realisation for all group creditors as per the approved resolution framework. Image Source Also read: J&K undertakes roadworks worth Rs 1.5 lakh cr: Nitin Gadkari

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Infrastructure Urban

02 Jun 2026

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..