IL&FS seeks higher bid for Chenani-Nashri Tunnel project in J&K
ROADS & HIGHWAYS

IL&FS seeks higher bid for Chenani-Nashri Tunnel project in J&K

IL&FS, which had sold the Chenani-Nashri Tunnel (CNTL) project in J&K to Cube Highways & Infrastructure last December for Rs 3,900 crore, is looking for a new buyer or an updated proposal from the Singaporean highways player after the sale pact expiry and also a rise in valuation that has jumped to more than Rs 5,200 crore now.

CNTL is a subsidiary of IL&FS Transportation Networks, which had inked a Rs 3,900-crore share purchase deal with Cube in August 2020 but regulatory, involving NCLT and NHAI, permissions came late, leading to the agreement getting expired this August.

The tunnel, which reduces the travel time between Jammu and Srinagar by 31 km, was placed on the block in December 2018 after the parent IL&FS went bankrupt two months back.

The two-lane Chenani-Nashri tunnel was commissioned with a project value of Rs 5,269 crore in March 2017, with a concession term up to March 2032. The project received more than 24 bidders, and Cube's Rs 3,900 crore proposal was the highest. They confirm that the CNTL-Cube share purchase agreement has lapsed, and the updated fair price is higher than the earlier estimate.

The past valuation was done in 2018 and under pressure, but since then the collection from the tunnel traffic has updated and so is the debt resolution progress at IL&FS. The agreement expired not because of higher valuation or something else but because of setbacks in getting the necessary permissions.

A reply from Cube, which has created many India-related investments in infrastructure, is expected. Cube has already written to the government-appointed IL&FS board headed by banker Uday Kotak, marginally updating its proposal and asking for an extension of the share sale agreement timelines. Cube has additionally presented its revamped offer to the NCLT for permission. But the new bid is too marginal, and the board is likely to reject it.

Last week, the managing director of IL&FS Group, CS Rajan, had hinted that the group was assessing all options for a better cost. The options that can be assessed cover rebidding, invit, or a new agreement with Cube at updated valuation.

The board is assessing all available options, comprising updated value by Cube, to guarantee optimum realisation for all group creditors as per the approved resolution framework.

Image Source

Also read: J&K undertakes roadworks worth Rs 1.5 lakh cr: Nitin Gadkari

IL&FS, which had sold the Chenani-Nashri Tunnel (CNTL) project in J&K to Cube Highways & Infrastructure last December for Rs 3,900 crore, is looking for a new buyer or an updated proposal from the Singaporean highways player after the sale pact expiry and also a rise in valuation that has jumped to more than Rs 5,200 crore now. CNTL is a subsidiary of IL&FS Transportation Networks, which had inked a Rs 3,900-crore share purchase deal with Cube in August 2020 but regulatory, involving NCLT and NHAI, permissions came late, leading to the agreement getting expired this August. The tunnel, which reduces the travel time between Jammu and Srinagar by 31 km, was placed on the block in December 2018 after the parent IL&FS went bankrupt two months back. The two-lane Chenani-Nashri tunnel was commissioned with a project value of Rs 5,269 crore in March 2017, with a concession term up to March 2032. The project received more than 24 bidders, and Cube's Rs 3,900 crore proposal was the highest. They confirm that the CNTL-Cube share purchase agreement has lapsed, and the updated fair price is higher than the earlier estimate. The past valuation was done in 2018 and under pressure, but since then the collection from the tunnel traffic has updated and so is the debt resolution progress at IL&FS. The agreement expired not because of higher valuation or something else but because of setbacks in getting the necessary permissions. A reply from Cube, which has created many India-related investments in infrastructure, is expected. Cube has already written to the government-appointed IL&FS board headed by banker Uday Kotak, marginally updating its proposal and asking for an extension of the share sale agreement timelines. Cube has additionally presented its revamped offer to the NCLT for permission. But the new bid is too marginal, and the board is likely to reject it. Last week, the managing director of IL&FS Group, CS Rajan, had hinted that the group was assessing all options for a better cost. The options that can be assessed cover rebidding, invit, or a new agreement with Cube at updated valuation. The board is assessing all available options, comprising updated value by Cube, to guarantee optimum realisation for all group creditors as per the approved resolution framework. Image Source Also read: J&K undertakes roadworks worth Rs 1.5 lakh cr: Nitin Gadkari

Next Story
Resources

Master Builders Solutions Forges Path into India Market with MBT-Construction Chemicals

Master Builders Solutions, a global leader in innovative concrete admixtures and solutions for the construction industry, announces its strategic expansion into the dynamic Indian market. Leveraging its expertise and advanced solutions, Master Builders Solutions aims to address the growing demand for sustainable, high-performance construction materials across various sectors in India. The move into India represents a significant milestone for Master Builders Solutions, aligning with its commitment to delivering cutting-edge solutions worldwide. With a rapidly evolving construction landscape in..

Next Story
Resources

TrucksUp collaborates with AU Small Finance Bank to empower aspiring buyers and small fleet owners

TrucksUp has announced a strategic partnership with AU Small Finance Bank Ltd to offer economic, easy and hassle-free financing solutions for used trucks focusing on driver and transport business community. This partnership tactically aims to support small fleet owners in India by providing low EMI loans at competitive interest rates. Their target audience can also benefit from refinancing options on existing trucks and avail of top-up loans to meet their financial needs. This is making the access to capital needs for truck drivers’ community easy to grow and scale their business. This colla..

Next Story
Resources

Build Capital to Invest Rs 1.5 billion in Navi Mumbai’s RE Market in 2025

Build Capital, an innovative early-stage real estate fund, has completed its maiden investment in the Navi Mumbai market. This investment in Satyam Group’s project is part of Build’s strategy to become a preferred partner in early – stage real estate financing in Mumbai Metropolitan Region (MMR).Build Capital has further announced that it plans to invest close to Rs 1.5 billion (bn) in the Navi Mumbai market out of its total target investments of Rs. 4 bn for the year 2025. Kuldeep Jain, CEO and Co-Founder, Build Capital said, “We are plugging the existing gaps of early-stage financing..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000