A consortium of state-run banks, led by Canara Bank, is set to move forward with a one-time settlement (OTS) proposal from AJR Infra and Tolling Ltd to recover Rs 3.12 billion in unpaid loans related to the stalled Indira Container Terminal Pvt Ltd (ICTPL) project at Mumbai Port. This development follows the unsuccessful Swiss Challenge auction, which aimed to secure higher bids than the promoter's anchor offer. AJR Infra and Tolling Ltd (formerly Gammon Infrastructure Projects Ltd), the promoter of ICTPL  a container terminal with a capacity of 1.2 million twenty-foot equivalent units (TEUs) owes Rs 3.12 billion to lenders including Canara Bank, Punjab National Bank, Central Bank of India, and India Infrastructure Finance Company Ltd. Canara Bank, acting as the lead lender, initiated a Swiss Challenge auction to invite bids exceeding the reserve price of Rs 2.6 billion proposed by AJR Infra and Tolling for a one-time settlement. The auction, structured as an all-cash bid, started at Rs 2.73 billion, marking a 5% increase over the anchor bid. However, the auction concluded on Friday, August 23, 2024, without attracting any higher offers, sources confirmed. Nobody came, stated a banker involved in the process. We will now consult with all the banks in the lending consortium to consider proceeding with the one-time settlement proposal submitted by AJR Infra and Tolling, the banker added. Under the Swiss Challenge framework, the original bidder (AJR Infra and Tolling) retains the right to match the highest bid received during the open auction. If the original bidder declines, the highest competing bid would be accepted. With no higher bids received, the focus shifts to the OTS proposal from AJR Infra and Tolling. The ICTPL project, awarded to AJR Infra and Tolling in December 2007 through a global tender, was slated to commence operations in December 2010 for a 30-year period. As the largest privatization project undertaken by the Mumbai Port Authority, one of India's oldest ports, the project faced significant delays. These delays were primarily due to the Mumbai Port Authority's inability to fulfill contractual obligations, such as deepening the approach channel and berth pocket, and handing over the required areas at Princess and Victoria Docks for container storage. Additionally, the project was hampered by the denial of security clearance for the procurement of Chinese-made cranes essential for loading and unloading containers. The postponement of the Rs 10.15 billion facility designed to handle 1.2 million TEUs led to increased project costs and diminished its viability. Concurrently, the Jawaharlal Nehru Port Trust (JNPT), located nearby, enhanced its position as a preferred gateway for export-import containers by doubling its capacity. In July 2015, the Mumbai Port Authority permitted ICTPL to handle roll-on, roll-off vessels carrying automobiles and steel cargo at the berth as an interim measure. Under this arrangement, ICTPL retained 20% of the gross revenue, while 55% was shared with the Mumbai Port Authority and 25% with the lenders. Due to the operational delays exceeding the Reserve Bank of India's (RBI) stipulated limits, the lenders classified the account as a Non-Performing Asset (NPA), halting further loan disbursements and bringing construction activities to a standstill. In an effort to revive the stalled project, AJR Infra and Tolling has submitted a fresh OTS proposal to its lenders, which is currently under consideration, according to the company's website. (ET)