IL&FS set to sell Chinese road asset to PingAn Insurance

26 Dec 2020 Editorial Team

Infrastructure Leasing and Financial Services (IL&FS), under the scanner for a while, is set to sell its Chinese road asset to PingAn Insurance (Group) for nearly Rs 2,074 crore. This sale will help the company resolve its debt worth Rs 2,500 crore.

The company has received approval from the Supreme court’s Justice D K Jain to sell its assets. It includes its Chinese JV road asset-Chongqing Yuhe Expressway co Ltd (CYEC) to the Chinese company, PingAn. It is among the largest financial services groups in the world.

As of now, IL&FS owns 49% of the asset through ITNL International Pvt Ltd (IIPL), a Singapore subsidiary. Moreover, Chongqing Expressway Group holds the remaining 51%. With a $281 million bid for 100% stake in CYEC, PingAn emerged as the highest bidder. The sale proceeds will be used to pay the senior secured lenders based in IIPL, bond holders and unsecured inter-corporate loans.

Justice DK Jain, appointed by the court to oversee the IL&FS resolution process, approved the sale of Chenani Nashri Tunnelway to Cube Highways addressing Rs 4,910 crore debt and Jorhat Shillong Expressway Ltd to Sekura Roads to address Rs 16 crore debt.

These three road assets will together address Rs 9,000 crore debt. Additionally, IL&FS proposes to address Rs 8,000 crore of debt through InVit. It has already received approval from regulators of the market.

CYEC currently holds and operates a concession for a toll-based expressway of about 58.72 km in China’s mainland till 2032. It has the right to collect toll from users and the Chinese government for the remainder of the concession term.

The new board at Il&FS will address its overall debt of Rs 50,000 crore by the end of the fiscal year. The company has already addressed Rs 19,000 crore.

Infrastructure Transport

15 Sep 2025

Cabinet Approves Key Highway and Rail Projects in Bihar Region

The Union Cabinet on Wednesday approved the four-laning of the 84.2-km Mokama-Munger section of the Buxar-Bhagalpur high-speed corridor, a key industrial region in poll-bound Bihar. The Cabinet also sanctioned the doubling of the 177-km Bhagalpur-Dumka-Rampurhat railway line, which passes through Bihar, Jharkhand, and West Bengal, at a cost of Rs 31.7 billion.The Rs 44.5 billion highway project will be constructed under the hybrid annuity model, a variant of public-private partnership. The Mokama-Munger stretch was the only remaining two-lane section of the 363-km Buxar-Bhagalpur corridor. Fou..

NGT Issues Notice on Bengaluru Twin Tunnel Project

The National Green Tribunal (NGT) on Wednesday issued notices in response to a petition filed by Bengaluru Praja Vedike and others, challenging the Bengaluru twin tunnel road project. Petitioners claim the project was “hastily announced” and bypassed mandatory environmental impact assessment procedures.Notices have been served to the Karnataka Government, Greater Bengaluru Authority, State Environment Impact Assessment Authority (SEIAA), Bengaluru Smart Infrastructure Ltd (B-SMILE), the Union Ministry of Environment, Forest and Climate Change, and project consultants.The 16.74-km twin-tube..

India’s Residential Sales to Dip Slightly in FY26

Residential sales in India’s seven major cities are projected to decline by up to 3 per cent year-on-year in FY26 to 620–640 million square feet (msf), amid a moderation in sales velocity, according to ratings agency Icra.In FY25, sales stood at 643 msf, down 8 per cent YoY, following a sharp contraction in new launches and moderated demand in the affordable and mid-income segments. This slowdown came after the sector posted a robust compound annual growth rate of 26 per cent in area sales between FY22 and FY24.Icra noted: “Having seen a strong upcycle, the sector entered an equilibrium ..