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NHAI to foreclose or abort stuck road projects of IL&FS

Tuesday, 14 May 2019
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The National Highways Authority of India (NHAI) will either foreclose or terminate at least five to seven of its road projects of Infrastructure Leasing and Financial Services (IL&FS). These projects got stuck over cost and time overruns. NHAI will re-invite bids in due course to complete the balance of work.


Some of the road projects which are under dispute and being worked for foreclosure are: Khed-Sinnar, Barwa Adda-Panagarh, Pune-Solapur, Patna-Gaya-Dobhi, Jorabat-Shillong, Chennai-Nashri and Balasore-Kharagpur.

IL&FS has in general given its no objection to NHAI and National Highways & Infrastructure Development Corporation (NHIDCL) to invite bids for balance work in the affected projects.

However, before the award, an amicable settlement has to be finalised for payment of completed work. IL&FS has already received around 30 bids for expressions of interest (EOIs) invited in December 2018 from potential buyers for its 19 road projects as well as three other assets and businesses, including a sports complex in Thiruvananthapuram in Kerala.

Of the 19 projects under IL&FS Transportation Networks, the roads development arm, seven are hybrid annuity mode (HAM) road projects totalling 1,774 km, while eight are operating toll projects aggregating about 6,572 km. There are also four under-construction projects that would be around 1,736 km on completion.

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