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

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

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.

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.

Next Story
Infrastructure Urban

Blue Dart posts revenue growth in FY26 on e-commerce and B2B demand

Blue Dart Express Limited, South Asia’s express air and integrated transportation and distribution company, has reported year-on-year growth in revenue for the financial year ended March 31, 2026, driven by strong momentum in e-commerce shipments and B2B surface express solutions.Announcing its financial results after the Board Meeting held in Mumbai, the company said revenue from operations rose to Rs 6,141 crore in FY2025–26, compared to Rs 5,720 crore in FY2024–25. Profit after tax for the year stood at Rs 240 crore.For the quarter ended March 31, 2026, Blue Dart reported revenue from..

Next Story
Infrastructure Urban

Terex launches TRAC vibration analysis system

Terex®, a global provider of specialised equipment solutions, has launched TRAC, a new vibration analysis system designed to deliver deeper insight into the performance, condition and long-term structural integrity of screening equipment.Announced in Hosur on May 11, 2026, the TRAC system is now available across screening equipment offered under Terex Materials Processing (MP) brands, including Powerscreen®, Finlay®, EvoQuip®, MDS®, Terex® Washing Systems, Terex® MPS (Cedarapids®, Simplicity®), MAGNA™ and Terex® Ecotec.Developed specifically for vibratory screening equipment by Ter..

Next Story
Infrastructure Urban

ADIO partners Motherson to set up large automotive components hub in KEZAD

The Abu Dhabi Investment Office (ADIO) has announced its support for Samvardhana Motherson International Limited’s (Motherson) new manufacturing hub in Abu Dhabi, marking a major step in strengthening the emirate’s position as a global centre for advanced manufacturing and automotive supply chains.ADIO said the partnership aligns with its strategy to accelerate high-value industrial investments and build resilient supply chains across priority sectors, further reinforcing Abu Dhabi’s competitiveness as a regional and global manufacturing and export hub.Under the partnership, a large-scal..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

-->