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Government to take over 3 stuck highway projects of IL&FS

Infra News - Published on Fri, 24 May 2019

Image Source: Quora
ET reported that the government will take over three under construction national highway projects that were being executed by debt-ridden IL&FS Group. The projects in question will be owned by the ministry of road transport and highways after the parties reached a settlement of about INR 200 crore with the group's lenders. The projects will be re-tendered for completion of the remaining work. The highways ministry had in March issued a set of guidelines for salvaging ‘stuck’ national highway projects.

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 guidelines said that the concerned authority-National Highways Authority of India (NHAI) or National Highways and Infrastructure Development Corporation (NHIDCL) or Public Works Department (PWD)-would pay for the executed or completed work in terms of milestone payment criteria set forth in the agreement.

A transport ministry official said “The settlement for projects constructed by IL&FS has been reached broadly on the basis of these guidelines."

Source :

Posted By : Sanju Moirangthem on Fri, 24 May 2019
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