IL&FS gets govt approval for Rs 2,700 crore claims towards incomplete road projects
New Delhi: Crisis-hit IL&FS Group has received approvals from various government authorities for claims worth about Rs 2,700 crore towards stuck or incomplete road projects, officials said.
The NHAI Conciliation Committee recently approved a claim for approximately Rs 707 crore for the ILFS-Fagne Songadh Expressway Limited project (in Gujarat-Maharashtra border area), while the committee had earlier approved claims of Rs 902 crore for the Khed Sinnar Expressway project (in Maharashtra).
Other projects for which claims have been approved include Kiratpur Ner Chowk Expressway Limited for Rs 672 crore (in Himachal Pradesh) and Jorbat Shillong Expressway Limited for Rs 252 crore (Meghalaya).
Additionally, the Ministry of Road, Transport and Highways had cleared claims of ITNL Road Infrastructure Development Company (IRIDCL) for Rs 144 crore.
In case of both Jorbat Shillong and IRIDCL projects, the settlement agreements have been duly signed with authorities, officials said.
When contacted, an IL&FS spokesperson declined to comment.
In October 2018, the government had seized control of the debt-trapped company and superseded its board by appointing a new one, led by eminent banker Uday Kotak as its chairman.
The new board, as part of the overall resolution process for the IL&FS Group, has sold a number of assets to clear dues and debt.
Officials said these initiatives of engaging with various authorities such as the Ministry, NHAI and NHIDCL for settlement of claims relating to incomplete and terminated projects and for compensation claims filed in respect of certain operational projects, is part of the new board's resolution process.
The ministry in March 2019 had formulated guidelines for resolution of stuck projects (mainly incomplete projects) and provided parameters for authorities to foreclose the concession agreement and pay compensation being the lower of value of work done and 90 per cent of debt due.