+
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 Transport

PM Inaugurates Bihar Highway and New Ganga Bridge

Prime Minister Narendra Modi will inaugurate a key highway project on Friday, connecting Aunta (Mokama) and Simaria (Begusarai), featuring a newly built 1.865-km bridge across the Ganga.The project establishes direct road connectivity between Mokama in Patna district and Begusarai. The bridge has been constructed parallel to the old two-lane rail-cum-road Rajendra Setu, which is currently under repair and restricts heavy vehicle movement.The new bridge will allow heavy vehicles to avoid a detour of nearly 100 km while travelling between north Bihar districts such as Begusarai, Supaul, Madhuban..

Next Story
Infrastructure Transport

Centre Approves 110 Km Capital Ring Road in Bhubaneswar

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the construction of a six-lane access-controlled Capital Region Ring Road around Bhubaneswar.The 110.875 km project, to be developed under the Hybrid Annuity Mode, involves an investment of Rs 83.07 billion. It is designed to decongest the existing Rameshwar–Tangi stretch, which currently faces heavy traffic through Khordha, Bhubaneswar and Cuttack.According to the official statement, the corridor will divert commercial vehicles away from city limits, enabling smoother freight movement, re..

Next Story
Infrastructure Transport

Patna-Purnia Expressway Notified as National Expressway-9

The Patna-Purnia Expressway has been officially notified as National Expressway-9 (NE-9), marking a major milestone in Bihar’s infrastructure development. This 250-kilometre corridor will connect the state capital, Patna, with Hansdah in Purnia district, providing the Seemanchal region with a direct, high-speed route to central Bihar.Designed as a signal-free corridor, the expressway will include 21 major bridges, 140 minor bridges, and 322 underpasses. Once operational, travel time between Patna and Purnia is expected to reduce to about three hours, significantly boosting trade, mobility, a..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?