Moradabad Bareilly Expressway will be paid a claim compensation of Rs 425 crore by NHAI for the losses suffered by it on account of the cost overrun for development of the project.
Shares of IL&FS Transportation Networks rose 9.3 percent intraday Wednesday after company signed a settlement agreement with NHAI.
A settlement agreement was signed by Moradabad Bareilly Expressway (MBEL), a subsidiary of the company on various claims filed against NHAI in relation to the work of development, maintenance and management of a highway from Moradabad to Bareilly in the State of Uttar Pradesh, company said in release.
MBEL will be paid a claim compensation of Rs 425 crore by NHAI for the losses suffered by it on account of the cost overrun for development of the project.
The settlement agreement is not subject to any appeal by NHAI and the disbursement of the compensation amount will be effected by NHAI in due course, it added.
At 09:53 hrs IL&FS Transportation Networks was quoting at Rs 26.25, up Rs 1.20, or 4.79 percent on the BSE.
The share price declined 60 percent in last 6 months.
Posted by Rakesh Patil