Nod for IL&FS SPV settlement from NHAI
ROADS & HIGHWAYS

Nod for IL&FS SPV settlement from NHAI

The National Company Law Tribunal (NCLT) has approved the Rs 707.70 crore settlement claim made against the National Highways Authority of India (NHAI) by Fagne Songadh Expressway (FSEL), a special purpose vehicle (SPV) of IL&FS for the expressway project that connects Fagne in Maharashtra’s Dhule with Songadh in Gujarat’s Tapi district.

The tribunal allowed FSEL to receive the settlement amount subject to any tax deduction as applicable and any further withholding of an amount of Rs 16.93 crore towards royalty payment.

The authority will pay the settlement amount under the approved guidelines for the resolution of road projects that have been stuck for various reasons.

As per the guidelines formulated by the Ministry of Road Transport and Highways (MoRTH) in March 2019, in case of incomplete or stalled projects, authorities would be able to foreclose the project's concession agreement and pay compensation based on the value of work done or 90% of the debt due, whichever is lower.

The NCLT order noted that the settlement amount, which is to be paid by NHAI directly to the FSEL sub-contractors, shall be deposited into an Escrow Account in any nationalised bank and shall be maintained as fixed deposits.


Make in Steel 2021

24 February 

Click for event info


4th Indian Cement Review Conference 2021

17-18 March 

Click for event info


The order said that the settlement amount should not be adjusted or set off against any other dues pertaining to any bank or financial institution.

NHAI Conciliation Committee had approved this claim for FSEL last year and was pending NCLT approval. The 140 km project worth Rs 2,000 crore was to be delivered in May 2019.

Overall dues of the financing company stood at Rs 91,000 crore. Last month, IL&FS said it had addressed Rs 32,000 crore of the group's overall debt.

Earlier, IL&FS had proposed to initiate bankruptcy proceedings for two of its offshore firms—ITNL International DMCC (IIDMCC) and ITNL Infrastructure Developers LLC (IIDL) in UAE courts. The company had requested NCLT to take on record its proposal to initiate the bankruptcy proceedings before the Dubai Courts under UAE Federal Decree.

In July 2018, the road arm of IL&FS was facing difficulty in making repayments due on its bonds. In early September 2018, one of the subsidiaries of IL&FS Group was unable to repay a short-term loan of Rs 1,000 crore taken from the Small Industries Development Bank of India (SIDBI).

Image: IL&FS, bankrupt since 2018, is beset with a whopping Rs 91,000 crore debt.


Also read: IL&FS set to sell Chinese road asset to PingAn Insurance

Also read: Adani is a top contender for DHFL

The National Company Law Tribunal (NCLT) has approved the Rs 707.70 crore settlement claim made against the National Highways Authority of India (NHAI) by Fagne Songadh Expressway (FSEL), a special purpose vehicle (SPV) of IL&FS for the expressway project that connects Fagne in Maharashtra’s Dhule with Songadh in Gujarat’s Tapi district. The tribunal allowed FSEL to receive the settlement amount subject to any tax deduction as applicable and any further withholding of an amount of Rs 16.93 crore towards royalty payment. The authority will pay the settlement amount under the approved guidelines for the resolution of road projects that have been stuck for various reasons. As per the guidelines formulated by the Ministry of Road Transport and Highways (MoRTH) in March 2019, in case of incomplete or stalled projects, authorities would be able to foreclose the project's concession agreement and pay compensation based on the value of work done or 90% of the debt due, whichever is lower. The NCLT order noted that the settlement amount, which is to be paid by NHAI directly to the FSEL sub-contractors, shall be deposited into an Escrow Account in any nationalised bank and shall be maintained as fixed deposits.Make in Steel 202124 February Click for event info4th Indian Cement Review Conference 202117-18 March Click for event info The order said that the settlement amount should not be adjusted or set off against any other dues pertaining to any bank or financial institution. NHAI Conciliation Committee had approved this claim for FSEL last year and was pending NCLT approval. The 140 km project worth Rs 2,000 crore was to be delivered in May 2019. Overall dues of the financing company stood at Rs 91,000 crore. Last month, IL&FS said it had addressed Rs 32,000 crore of the group's overall debt. Earlier, IL&FS had proposed to initiate bankruptcy proceedings for two of its offshore firms—ITNL International DMCC (IIDMCC) and ITNL Infrastructure Developers LLC (IIDL) in UAE courts. The company had requested NCLT to take on record its proposal to initiate the bankruptcy proceedings before the Dubai Courts under UAE Federal Decree. In July 2018, the road arm of IL&FS was facing difficulty in making repayments due on its bonds. In early September 2018, one of the subsidiaries of IL&FS Group was unable to repay a short-term loan of Rs 1,000 crore taken from the Small Industries Development Bank of India (SIDBI).Image: IL&FS, bankrupt since 2018, is beset with a whopping Rs 91,000 crore debt. Also read: IL&FS set to sell Chinese road asset to PingAn Insurance Also read: Adani is a top contender for DHFL

Next Story
Infrastructure Energy

Samridh, CEID Launch High-Capacity Biogas Plant in Moradabad

Samridh Bioenergy has broken ground on a 12 TPD compressed biogas (CBG) plant in Moradabad, Uttar Pradesh, under the MNRE’s National Bioenergy Programme. Spread across 12 acres, the plant will process 270 tonne of organic waste daily and generate 30,000 cubic metre of biogas per day.CEID Consultants and Engineering Pvt Ltd has been appointed as the EPC contractor, responsible for the complete design, procurement, and construction of the plant. Equipped with four multi-feed digesters, the facility will accept a mix of press mud, cow dung, chicken litter, and vegetable waste, supporting contin..

Next Story
Real Estate

Delhi Micro-Markets Drive Up Housing Prices: Grihum Study

A new study by Grihum Housing Finance reveals that the rise of micro-markets across Delhi-NCR is fuelling real estate price appreciation, especially in the affordable housing segment. Key drivers include renewed post-pandemic interest, migration trends, and government schemes like PMAY.According to the study, over the past two decades, floor rates have risen 267 per cent, from Rs 1,500 per sq ft in 2005 to Rs 5,500 in 2024. In the same period, land rates surged 492 per cent, from Rs 1,300 to Rs 7,700 per sq ft. The sharp increase highlights strong capital appreciation in Delhi’s emerging loc..

Next Story
Resources

Covestro Develops PCR Polycarbonates from End-of-Life Headlamps

Materials manufacturer Covestro has launched post-consumer recycled (PCR) polycarbonates made from end-of-life automotive headlamps, in a move aimed at strengthening circularity in the auto industry. These TÜV Rheinland-certified grades, containing 50 per cent recycled content, are now commercially available for new automotive applications.Developed under a joint programme led by GIZ, with Volkswagen and NIO as key partners, the recycled material is currently being validated for use in future vehicle models.""This new line of polycarbonate represents a significant step in supporting the autom..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?