Toll Road Creditors agrees Rs 2.70 billion for settlement
ROADS & HIGHWAYS

Toll Road Creditors agrees Rs 2.70 billion for settlement

After no rival proposal was received for the government-backed bad bank's offer in April, the six creditors of Essel Infraprojects' Ludhiana-Talwandi Toll Road (LTTRPL) have approved NARCL's Rs 2.70 billion offer to repay the company's Rs 9.8 billion debt. The purchase, which is probably going to be NARCL's first acquisition of the fiscal year, is now being finalised by lenders through the creation of an assignment agreement. As usual, NARCL's offer is based on a 15:85 structure, with cash accounting for 15% of the consideration and security receipts (assured by the government) to be paid upon recovery. An email asking for comments was not answered by NARCL.

Since no transaction has been completed in April or May thus far this fiscal year, it is quite likely that this one will be the first to be finished. The concession deal, signed by NHAI in March 2012, was for the construction of a 78-kilometer, four-lane section of the National Highway-95 between Ludhiana and Talwandi Bhai in Punjab by September 2014. The agreement was valid for 29 years. However, the loan became non-performing due to project delays.

With a debt of Rs 2.64 billion outstanding, PNB is the primary lender. The Central Bank, Indian Overseas Bank, Bank of Baroda, Canara Bank, and IIFCL are further lenders. At the end of 2018, NARCL has eighteen stressed accounts totaling Rs 925 billion in debt. It is estimated that another 24 accounts aggregating Rs 760 billion are in the pipeline to be acquired in the current fiscal year.

However, progress has been slow since this is the first time such a government-backed bad bank has started operations in India.

After no rival proposal was received for the government-backed bad bank's offer in April, the six creditors of Essel Infraprojects' Ludhiana-Talwandi Toll Road (LTTRPL) have approved NARCL's Rs 2.70 billion offer to repay the company's Rs 9.8 billion debt. The purchase, which is probably going to be NARCL's first acquisition of the fiscal year, is now being finalised by lenders through the creation of an assignment agreement. As usual, NARCL's offer is based on a 15:85 structure, with cash accounting for 15% of the consideration and security receipts (assured by the government) to be paid upon recovery. An email asking for comments was not answered by NARCL. Since no transaction has been completed in April or May thus far this fiscal year, it is quite likely that this one will be the first to be finished. The concession deal, signed by NHAI in March 2012, was for the construction of a 78-kilometer, four-lane section of the National Highway-95 between Ludhiana and Talwandi Bhai in Punjab by September 2014. The agreement was valid for 29 years. However, the loan became non-performing due to project delays. With a debt of Rs 2.64 billion outstanding, PNB is the primary lender. The Central Bank, Indian Overseas Bank, Bank of Baroda, Canara Bank, and IIFCL are further lenders. At the end of 2018, NARCL has eighteen stressed accounts totaling Rs 925 billion in debt. It is estimated that another 24 accounts aggregating Rs 760 billion are in the pipeline to be acquired in the current fiscal year. However, progress has been slow since this is the first time such a government-backed bad bank has started operations in India.

Next Story
Infrastructure Urban

Designing Tomorrow: Amaravati’s Net Zero Landmark

Amaravati has achieved a defining landmark in India’s sustainable infrastructure journey with the inauguration of the APCRDA Project Office, the nation’s first government building to earn the IGBC Net Zero Energy Rating – Design Stage. Conceptualised by the Andhra Pradesh Capital Region Development Authority (APCRDA) and certified by the Indian Green Building Council (IGBC), the project exemplifies how governance, design and innovation can converge to deliver measurable environmental impact.A vision rooted in sustainabilitySet within a 4.3-acre site along the Seed Access Road in the Amar..

Next Story
Real Estate

Pidilite Elevates Construction with PPS

Pidilite Industries introduced Pidilite Professional Solutions (PPS) — a dedicated vertical for the construction and interiors ecosystem — at ACETECH Bengaluru 2025. Designed to empower architects, developers, contractors, and interior specialists, PPS delivers comprehensive support that extends far beyond products to ensure project excellence from concept to completion. Kavinder Singh, Joint Managing Director, Pidilite Industries, noted, “At Pidilite, we believe in enabling the construction fraternity to build boldly and sustainably. With Pidilite Professional Solutions (PPS),..

Next Story
Infrastructure Transport

Punjab, Centre Fast-Track Rajpura-Mohali Rail Line Development

The central government has fast-tracked the construction of the Rajpura-Mohali rail line to enhance connectivity in Punjab. This ambitious infrastructure project, aimed at improving transportation links between Rajpura and Mohali, has been identified as a key step in fostering regional economic growth. Union Minister for Railways, Ashwini Vaishnaw, announced the project’s acceleration during a recent assessment of the area. The rail line is expected to play a significant role in reducing travel time, promoting industrial growth, and boosting logistics efficiency in the region. The project,..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?