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IL&FS receives Rs 693 crore as settlement claims from NHAI

IL&FS has received Rs 693 crore settlement claims for two road projects from the National Highways Authority of India (NHAI), the company said in a statement.

This comes as part of the conciliation process of the National highways building authority, to resolve stuck projects.

ITNL, a subsidiary of IL&FS, on March 31st this year received settlement amount of Rs 673 crore for Kiratpur Ner Chowk Expressway Limited (KNCEL) and Rs 20 crore towards claims for Chenani Nashri Tunnelway Limited (CNTL) – from NHAI.

CNTL is a completed project, earning annuities, and the Rs 19.6 crore is the claim amount towards change of scope.

“With these two projects, NHAI and ministry of road transport and highways have settled aggregate IL&FS claims of over Rs 1,804 crore across six Road projects,” the statement said.

Earlier, Fagne Songadh Expressway Ltd (FSEL), a 100% subsidiary of ITNL, completed its settlement with NHAI under the new MoRTH policy on stuck up projects receiving an amount of Rs 707 Cr.

Other IL&FS projects settled under claims and compensation by NHAI with the new board till date include Jorabat Shillong Expressway at Rs 252 crore, Baleshwar Kharagpur Expressway Limited at Rs 8 crore, and ITNL Road Infrastructure Development Company at Rs 144 crore that was settled by the transport ministry.

This out of court settlement has been reached under a new framework for salvaging languishing road projects.

The highways ministry had in March last year issued a set of guidelines for reviving ‘stuck’ national highway projects under execution.

As per the guidelines, recourse may be taken for foreclosure of an EPC agreement by a mutually agreed and executed agreement between the parties for projects awarded under the EPC mode, which qualify as stuck projects.

The concerned authority (NHAI/NHIDCL/PWD) would pay for the executed or completed work in terms of milestone payment criteria set forth in the agreement, the guidelines say.

Around 10 projects of IL&FS worth Rs 15,000 crore were stuck with the government.

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