Sources said that state-run NHAI and IL&FS have fast-tracked settlement of dues between themselves and they may go for an out-of-court settlement.
Nikita Vashisht
Moneycontrol News
Road transport and highways ministry is open to suggestions from the new management of beleaguered Infrastructure Leasing and Financial Services (IL&FS) to revive stalled infrastructure projects, Union Minister Nitin Gadkari said on October 5.
"They have a new management now who will do the analysis at their end and will give suggestions to us. We are facilitators and we want to complete our work in a transparent manner," Gadkari said.
IL&FS has been in the news after it defaulted on as many as seven debt obligations. At the end of FY18, the company had an outstanding debt amounting to Rs 91,000 crore. Around Rs 5,756 crore worth of debt is due for repayment over the next one year.
related news
Default at the investment company has raised concerns over a liquidity crunch in the money market, especially in the non-banking financial companies' (NBFC) sector.
IL&FS was undertaking various infrastructure projects in the country, including the Jozila tunnel (J&K), Barwa Adda-Panagarh (West Bengal), Patna-Gaya-Dobhi (Bihar), Fagne-Maharashtra/Gujarat border and Amravati-Chikli (Maharashtra).
The Ministry of Corporate Affairs appointed a new board at the company on October 1, 2018. While Vineet Nayyar will be the Vice-Chairman and Managing Director, Uday Kotak is the Chairman of the board. Other members include former Securities and Exchange Board of India (SEBI) chief GN Vajpai, ICICI Bank Chairman GC Chaturvedi, former Chief Secretary of Rajasthan CS Rajan and former bureaucrats Malini Shankar and Nand Kishore.
Declining to comment on speculations that National Highways Authority of India (NHAI) could take over IL&FS Transportation Network or reports of government planning to infuse funds in the stalled projects, Gadkari said that the issue will be solved within the "rules" prescribed by the government.
"We have the mandate to complete stuck projects... And if someone is approaching us for help, then I think we have made various changes already to facilitate that... Completing projects in a time bound manner is our mandate," Gadkari added.
Sources said that state-run NHAI and IL&FS have fast-tracked settlement of dues between themselves and they may go for an out-of-court settlement. According to the latter, NHAI owes about Rs 16,000 crore to it.
Media reports have also suggested that NHAI could take over toll-collection rights from IL&FS.