PJTL Lenders Approve Rs 10.20 billion One-Time Settlement
ROADS & HIGHWAYS

PJTL Lenders Approve Rs 10.20 billion One-Time Settlement

Lenders to the heavily indebted Panipat Jalandhar NH 1 Tollway (PJTL) have agreed to a one-time settlement for their Rs 34 billion dues. They accepted a Rs 10.20 billion all-cash offer from the promoters, the Canada-based Roadis Group and Hyderabad's Soma Enterprises, resulting in a 30% recovery, according to sources familiar with the deal.

The account had been affected by farmers' agitation in the area for several years and was eventually declared a Non-Performing Asset (NPA). Several months ago, the National Asset Reconstruction Company (NARCL) had proposed to take over the debt, but the promoters returned with a higher offer, which was largely accepted by the lenders, stated a person involved in the process.

NARCL, a government-backed bad loan aggregator, had offered Rs 1000 crore to the banks to take over the debt. However, this offer included 85% security receipts that would need to be encashed later post-recovery, unlike the all-cash settlement from the Roadis-Soma consortium. The settlement offer from the consortium still needs approval from all ten lenders in accordance with Reserve Bank of India regulations.

Almost all lenders are on board, but the entire process, including obtaining approvals from all banks, will take some time. Lenders are optimistic that the transaction can be completed within this quarter, mentioned another source aware of the details.

The State Bank of India (SBI) is the largest creditor to this account, holding 37% of the total dues, followed by Punjab National Bank with 17%. Other lenders to the project include Canara Bank, Union Bank of India, and UCO Bank. Individual lenders could not be contacted for comments.

In a rating note from March last year, Crisil mentioned that the company had been engaged by the National Highways Authority of India (NHAI) to widen the four-lane Panipat'Jalandhar section of NH-1 to six lanes, with a concession period of 15 years, including a construction period of 30 months.

Lenders to the heavily indebted Panipat Jalandhar NH 1 Tollway (PJTL) have agreed to a one-time settlement for their Rs 34 billion dues. They accepted a Rs 10.20 billion all-cash offer from the promoters, the Canada-based Roadis Group and Hyderabad's Soma Enterprises, resulting in a 30% recovery, according to sources familiar with the deal. The account had been affected by farmers' agitation in the area for several years and was eventually declared a Non-Performing Asset (NPA). Several months ago, the National Asset Reconstruction Company (NARCL) had proposed to take over the debt, but the promoters returned with a higher offer, which was largely accepted by the lenders, stated a person involved in the process. NARCL, a government-backed bad loan aggregator, had offered Rs 1000 crore to the banks to take over the debt. However, this offer included 85% security receipts that would need to be encashed later post-recovery, unlike the all-cash settlement from the Roadis-Soma consortium. The settlement offer from the consortium still needs approval from all ten lenders in accordance with Reserve Bank of India regulations. Almost all lenders are on board, but the entire process, including obtaining approvals from all banks, will take some time. Lenders are optimistic that the transaction can be completed within this quarter, mentioned another source aware of the details. The State Bank of India (SBI) is the largest creditor to this account, holding 37% of the total dues, followed by Punjab National Bank with 17%. Other lenders to the project include Canara Bank, Union Bank of India, and UCO Bank. Individual lenders could not be contacted for comments. In a rating note from March last year, Crisil mentioned that the company had been engaged by the National Highways Authority of India (NHAI) to widen the four-lane Panipat'Jalandhar section of NH-1 to six lanes, with a concession period of 15 years, including a construction period of 30 months.

Next Story
Infrastructure Transport

India’s Maha Kumbh of Road Construction

The RAHSTA Forum 2025, held on June 25 at Courtyard by Marriott, Mumbai, delivered powerful insights and dialogue on the future of India’s roads and highways sector. Organised by the FIRST Construction Council, the Forum served as the curtain-raiser to the much-anticipated RAHSTA Expo 2025, set to take place on 3rd and 4th September at the Jio Convention Centre, Mumbai.Union Minister of Roads Transport & Highways Shri Nitin Gadkari, while appreciating the efforts of FIRST Construction Council and ASAPP Info Global Group, commended the awards which recognise excellence across various..

Next Story
Real Estate

Built to Last, Designed to Impress

The construction and interior design industries stand at the confluence of functionality and aesthetics, where innovation powers the creation of enduring structures and inspiring spaces. At the heart of this process are materials and solutions that enable architects, designers, and builders to realise their visions with precision and reliability.Featuring iconic brands such as Fevicol—synonymous with adhesive solutions—Dr. Fixit, a complete waterproofing system renowned for addressing every critical area of construction, and Roff, a specialist in tile-fixing solutions, Pidilite has earned ..

Next Story
Infrastructure Energy

New Push to Cut India’s Air Pollution through Power Sector Reforms

In a significant stride toward environmental sustainability, Cummins India introduced CPCB IV+ compliant gensets to India on July 5, 2023, marking a paradigm shift in the power generation industry. These generators are engineered to adhere to the progressive emission norms set by the Ministry of Environment, Forest, and Climate Change. Being the first sets in the field, they have garnered praise for their remarkable achievements in emissions reduction and cutting-edge technology. Powerica, with its four-decade-long partnership with Cummins India Limited, is dedicated to consistently deliver th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?