+
Pune-Sholapur Road Restructure Allocates Rs 3.34 billion to Lenders
ROADS & HIGHWAYS

Pune-Sholapur Road Restructure Allocates Rs 3.34 billion to Lenders

Ten banks, led by Bank of India (BoI), have received Rs 3.34 billion from the toll collections accumulated by the Pune Sholapur Road Development (PSRDCL), which was previously owned by IL&FS. An additional Rs 870 million is expected to be disbursed as part of a restructuring agreement with the new owners, Roadstar Infra Investment Trust (Invit), according to a source familiar with the transaction.

The asset, transferred to Roadstar last year, has been reclassified as a standard asset under the restructuring plan. This plan includes extending the loan period from 2027 to 2032 and issuing non-convertible debentures payable over the next 20 years.

The source indicated that the distribution to lenders occurred earlier this month, with all lenders receiving their respective shares. An additional Rs 870 million is anticipated to be transferred by Roadstar in the coming days, making the total upfront payment to lenders Rs 4.21 billion. Banks are expected to recognize gains from this deal in the quarter ending September.

BoI did not respond to an email requesting comment. Other lenders to PSRDCL include Punjab National Bank, Indian Overseas Bank, UCO Bank, Bank of Baroda, Indian Bank, Canara Bank, Bank of Maharashtra, Union Bank of India, and Punjab & Sind Bank.

The restructuring deal was approved by lenders in September of the previous year, following IL&FS's transfer of PSRDCL to Roadstar in May. However, procedural delays arose due to some lenders requiring approval from the National Highways Authority of India (NHAI) and a re-vote because the new loan tenure extended beyond the project's original period. The source noted that while the deal had been long-awaited, issues such as the loan period exceeding the concession agreement with NHAI by eight months had to be resolved. Roadstar agreed to make an additional Rs 870 million payment to address this concern.

During the finalisation of the restructuring plan, lenders reassessed the project's repayment capacity, factoring in post-COVID traffic conditions on the highway. With the road operational, the company?s debt burden was deemed manageable.

Ten banks, led by Bank of India (BoI), have received Rs 3.34 billion from the toll collections accumulated by the Pune Sholapur Road Development (PSRDCL), which was previously owned by IL&FS. An additional Rs 870 million is expected to be disbursed as part of a restructuring agreement with the new owners, Roadstar Infra Investment Trust (Invit), according to a source familiar with the transaction. The asset, transferred to Roadstar last year, has been reclassified as a standard asset under the restructuring plan. This plan includes extending the loan period from 2027 to 2032 and issuing non-convertible debentures payable over the next 20 years. The source indicated that the distribution to lenders occurred earlier this month, with all lenders receiving their respective shares. An additional Rs 870 million is anticipated to be transferred by Roadstar in the coming days, making the total upfront payment to lenders Rs 4.21 billion. Banks are expected to recognize gains from this deal in the quarter ending September. BoI did not respond to an email requesting comment. Other lenders to PSRDCL include Punjab National Bank, Indian Overseas Bank, UCO Bank, Bank of Baroda, Indian Bank, Canara Bank, Bank of Maharashtra, Union Bank of India, and Punjab & Sind Bank. The restructuring deal was approved by lenders in September of the previous year, following IL&FS's transfer of PSRDCL to Roadstar in May. However, procedural delays arose due to some lenders requiring approval from the National Highways Authority of India (NHAI) and a re-vote because the new loan tenure extended beyond the project's original period. The source noted that while the deal had been long-awaited, issues such as the loan period exceeding the concession agreement with NHAI by eight months had to be resolved. Roadstar agreed to make an additional Rs 870 million payment to address this concern. During the finalisation of the restructuring plan, lenders reassessed the project's repayment capacity, factoring in post-COVID traffic conditions on the highway. With the road operational, the company?s debt burden was deemed manageable.

Next Story
Real Estate

MoHUA Sanctions 1.47 Lakh Additional Houses Under PMAY-U 2.0

In a major push towards the Government’s Housing for All mission, the Ministry of Housing and Urban Affairs (MoHUA) has approved 1,46,582 additional pucca houses under Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) for 14 States/UTs, bringing total sanctions under the revamped scheme to 8.56 lakh.The decision came during the fourth meeting of the Central Sanctioning and Monitoring Committee (CSMC), chaired by Srinivas Katikithala, Secretary, MoHUA, at the Ministry’s Kasturba Gandhi Marg office. Senior officials, State Principal Secretaries, and PMAY-U Mission Directors participated ..

Next Story
Real Estate

Piyush Goyal Inaugurates Expanded ISA Building at Intellectual Property Office

Union Minister of Commerce and Industry, Piyush Goyal, today inaugurated the newly expanded International Searching Authority (ISA) building at the Intellectual Property Office (IPO) in Dwarka, New Delhi, marking a major step forward in India’s intellectual property ecosystem.Addressing the gathering, Goyal highlighted that innovation has been central to India’s heritage for centuries, citing the engineering brilliance of the Konark Temple as a historic example. He emphasised that innovation is not just intellectual property but a symbol of sovereignty, and a key driver in India’s journe..

Next Story
Real Estate

SIEGER Boosts Automation in Mumbai Realty

SIEGER, a leading automation solutions provider, is expanding its advanced manufacturing capabilities to meet the surging demand for precision, high-speed automation in Mumbai’s rapidly growing real estate sector.Operating from a 21,000 m² advanced production hub in Coimbatore—part of a 40,000 m² integrated campus—SIEGER offers complete solutions from design and prototyping to manufacturing and deployment. The fully digitalised facility features CNC machining, QR-coded component tracking, conveyorized powder coating, and a Government of India–certified R&D centre, ensuring unmatc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?