Ludhiana toll road creditors OK NARCL's Rs 2.7 bn debt settlement

04 Jun 2024 CW Team

It was stated by sources familiar with the process that an assignment agreement is being prepared by the lenders to finalise the transaction, which is anticipated to mark NARCL's inaugural acquisition for this fiscal year.

"One of the individuals mentioned that all lenders have endorsed the transaction due to the absence of any competing bids. Final paperwork is being prepared, and an agreement is expected to be signed this month, following which the debt will be transferred to NARCL," said the source.

It was noted that NARCL's offer adheres to its usual structure, wherein 15% of the consideration is in cash, and the remaining amount is in security receipts, payable upon recovery, with government guaranteeing the same.

A second source, familiar with the details, commented, "This transaction is likely to be the first to conclude this fiscal year, as no transactions were completed in April and May."

The Ludhiana Toll Road project, aimed at constructing a 78-km four-lane stretch of the National Highway-95 between Ludhiana and Talwandi Bhai in Punjab by September 2014 under a concession agreement signed by NHAI in March 2012, valid for 29 years, turned into a non-performing loan due to project delays.

PNB, with an outstanding debt of Rs 2.64 billion, leads the lenders. Other lenders include Central Bank, Indian Overseas Bank, Bank of Baroda, Canara Bank, and IIFCL.

NARCL has acquired 18 stressed accounts with an aggregate debt of Rs 925.10 billion by the end of fiscal 2024. It is estimated that another 24 accounts, totaling Rs 760 billion, are in the pipeline for acquisition in the current fiscal.

However, progress has been sluggish, given that this is the first instance of a government-backed bad bank commencing operations in India.

The approval for NARCL's Rs.270-crore offer to settle Essel Infraprojects' Ludhiana-Talwandi Toll Road (LTTRPL) debt of Rs 9.88 billion by all six creditors was confirmed after no competing bid was received for the government-backed bad bank's offer in April. It was stated by sources familiar with the process that an assignment agreement is being prepared by the lenders to finalise the transaction, which is anticipated to mark NARCL's inaugural acquisition for this fiscal year. One of the individuals mentioned that all lenders have endorsed the transaction due to the absence of any competing bids. Final paperwork is being prepared, and an agreement is expected to be signed this month, following which the debt will be transferred to NARCL, said the source. It was noted that NARCL's offer adheres to its usual structure, wherein 15% of the consideration is in cash, and the remaining amount is in security receipts, payable upon recovery, with government guaranteeing the same. A second source, familiar with the details, commented, This transaction is likely to be the first to conclude this fiscal year, as no transactions were completed in April and May. The Ludhiana Toll Road project, aimed at constructing a 78-km four-lane stretch of the National Highway-95 between Ludhiana and Talwandi Bhai in Punjab by September 2014 under a concession agreement signed by NHAI in March 2012, valid for 29 years, turned into a non-performing loan due to project delays. PNB, with an outstanding debt of Rs 2.64 billion, leads the lenders. Other lenders include Central Bank, Indian Overseas Bank, Bank of Baroda, Canara Bank, and IIFCL. NARCL has acquired 18 stressed accounts with an aggregate debt of Rs 925.10 billion by the end of fiscal 2024. It is estimated that another 24 accounts, totaling Rs 760 billion, are in the pipeline for acquisition in the current fiscal. However, progress has been sluggish, given that this is the first instance of a government-backed bad bank commencing operations in India.

Infrastructure Urban

10 Mar 2026

MRF To Invest Rs 53 bn In Tamil Nadu Tyre Plant

MRF has signed a memorandum of understanding with the Tamil Nadu government to establish a greenfield manufacturing facility for automotive tyres and allied products at Sipcot Industrial Park in Sivaganga district. The plant will be the company's fourth in the state after units in Tiruvottiyur, Perambalur and Arakonam. The proposed project envisages an estimated investment of about Rs 53 billion (bn) over 12 years and is expected to generate direct employment for approximately 1,000 people. The memorandum is non-binding and subject to sanction of a customised incentive package, infrastructure ..

Building Material

10 Mar 2026

UltraTech Appoints Jayant Dua As MD-Designate For 2027

UltraTech Cement has appointed Jayant Dua as managing director (MD) designate who will take charge in 2027, the company announced. The appointment signals a planned leadership transition at one of the country's largest cement manufacturers. The board has set a clear timeline for the handover and has framed the move as part of a structured succession plan. Jayant Dua will be referred to as MD after assuming the role and will be responsible for overseeing operations, strategy and growth initiatives across the company's network. The company said the designation follows established governance norm..

Infrastructure Transport

10 Mar 2026

Ramky Wins Rs 14.0184 bn EPC Contract for Dighi Port Project

Ramky Infrastructure Limited has entered into an Engineering, Procurement and Construction (EPC) agreement with Maharashtra Industrial Township Limited (MITL) to deliver infrastructure works for Dighi Port Industrial Area (DPIA) Phase I under the Delhi Mumbai Industrial Corridor (DMIC). The contract value is Rs 14.0184 bn inclusive of GST and Operations and Maintenance (O&M) revenues. The project requires completion within 930 days from the appointed date. MITL is a special purpose vehicle formed with equity participation of the Government of India and the Maharashtra State Government to devel..