+
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.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train’s Surat-Vapi Section Set for 2027

The first section of the Mumbai-Ahmedabad Bullet Train corridor, linking Surat and Vapi, is targeted to begin services in 2027. Construction is expected to be completed by December 2026, while Railway Minister Ashwini Vaishnaw has indicated that an inauguration could take place around the middle of 2027. The National High Speed Rail Corporation (NHSRCL) said the train being manufactured in India is expected to reach the tracks around April or May 2027. The train will undergo extensive testing before the section is opened for passenger services. The project began construction in 2021 and includ..

Next Story
Infrastructure Transport

Indian Railways Approves Four Projects Worth Rs. 7.36 bn Across Four States

Indian Railways has approved four projects with a combined value of Rs. 7.36 bn across Uttar Pradesh, Maharashtra, Andhra Pradesh and Gujarat. The programme covers train protection, signalling, electric traction supply and a road overbridge, with each project assigned to a different railway zone. In Uttar Pradesh, Rs. 2.52 bn has been approved to extend the Kavach 4.0 automatic train protection system across 607.7 km in the Lucknow Division of North Eastern Railway. The system monitors train movements and can apply the brakes if a driver fails to observe a signal or exceeds a safe speed. The w..

Next Story
Infrastructure Urban

Chandru Raheja Sells 1.49% Stake in Mindspace REIT for Rs. 5 bn

Billionaire Chandru Lachmandas Raheja has sold a 1.49 per cent holding in Mindspace Business Parks REIT for Rs. 5 bn through a bulk deal on the BSE. The transaction involved 9.9 mn units and was executed at an average price of Rs. 505 per unit, according to exchange data. Following the sale, units of Mindspace Business Parks REIT were trading 0.18 per cent lower at Rs. 504.05 on Tuesday. Exchange data did not identify the buyers involved in the transaction. Raheja is the chairman of real estate company K Raheja Corp. The sale involved 99,00,990 units, representing 1.49 per cent of the Mumbai-b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code