Financially troubled IL&FS Engineering and Construction Company got the much-needed boost for its roads portfolio with the government approval to start work on one of its projects, which was earlier up for foreclosure. The company also settled one of its arbitration claims earlier this month.
“This is to inform that IL&FS Engineering and Construction Company has received approval from Ministry of Road Transport and Highways (MoRTH) on June 14, 2019, for revival/ restart of the road project which was previously referred for amicable foreclosure by the Competent Authority,” IL&FS said in a statement to BSE.
Work on the road project is expected to start within 15 days from the receipt of the Ministry’s consent.
"The company decided against the foreclosure and had sought permission for executing the project," the company added.
“IL&FS Engineering and Construction Companyhas received approval from the ministry for restart of the project regarding Rehabilitation and Upgrading to 2 lanes/2 lane with paved shoulders configuration and strengthening of Birpur— Bihpur Section (from km. 0.0 to km. 106.00) of NH—106 in the State of Bihar under Phase—l of National Highways interconnectivity Improvement Projects (NHIIP),” the company said in its release.
On June 10, the company informed BSE that it entered into a settlement agreement with National Highways Authority of India (NHAI), against the Arbitration Award in relation to two of its road projects. The company said it has received Rs 41.82 crore as claim amount for its Daboka to Nagaon section of NH-36 in Assam. In addition, it has also received Rs 108.33 crore as claim amount for Dharamtul to Sonapur Section of 108 33 NH-37 in Assam.