 "divestment")
IL&FS has decided to sell its entire 26 per cent equity stake in Noida Toll Bridge Company Ltd (NTBCL), which owns and maintains DND flyover connecting Delhi to Noida.
IL&FS has decided to monetise this marquee DND flyover, which was built in 2001, as one of the first roads to provide seamless connectivity from Delhi to Noida.
IL&FS has around 26 per cent stake in NTBCL, while the Uttar Pradesh government has 5 per cent stake. The remaining shares in the listed company are with the public.
The Board has decided to call for a public process to divest its share in the road project and would soon be inviting bids under this initiative, sources said.
IL&FS spokesperson confirmed the decision saying "monetisation of road assets is in accordance with the approved resolution framework."
The proceeds of the sale would be used for reduction of debt of IL&FS, sources said.
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So far, IL&FS has resolved an aggregate debt of Rs 57,000 crore and discharged an aggregate debt of Rs 36,000 crore across group companies.
This includes a total payout under interim distribution at Rs 10,000 crore.
IL&FS Group maintains its overall debt resolution target of Rs 61,000 crore, as against a total debt default of Rs 99,000 crore as of October 2018.
NTBCL has been promoted by Infrastructure Leasing and Financial Services Ltd (IL&FS) as a special purpose vehicle (SPV) to develop, construct, operate, and maintain the DND Flyway on a Build Own Operate Transfer (BOOT) basis.
NTBCL, a public listed company, incorporated in Uttar Pradesh in 1996, has been facing a financial crunch after the Allahabad High court decided to scrap the toll in 2016.
The company has since contested this decision and the case is currently pending in the Supreme Court.
However, it has been undertaking periodic maintenance, maintaining passenger rideability and ensuring upkeep of the bridge with internal accruals till date.
NTBCL has also been demanding Rs 100 crore from both UP and Delhi Government to take up structural repair of this 20 years old bridge that is urgently needed to maintain longevity of the bridge.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
