New Delhi: Infrastructure Leasing and Financial Services’ transportation subsidiary IL&FS Transportation Networks defaulted on a payment as low as 3.37 crore. IL&FS Transportation Networks India Limited carries out the government’s highway development programme. The company said on Monday that it will not be able to pay Rs 3.37 crore dues on interest payable on redeemable non-convertible debentures (NCDs) “due to insufficient funds”.
The IL&FS group has assets across highways, toll bridges, power projects, and transmission networks and it holds them through various special purpose vehicles. ITNL holds 40 percent of the group’s assets in India and abroad. Incorporated in the year 2000 the company has more than 14,000 lane-kilometres in a portfolio of over 30 projects which kind of makes it India’s biggest BOT (Build, Operate, Transfer) road assets owner.
IL&FS Transportation Networks said that the principal amount of the defaulted unsecured redeemable NCDs is Rs 50 crore and interest is Rs 1.15 crore. The principal amount of the defaulted secured redeemable NCDs is Rs 99 crore and interest is Rs 2.22 crore. Interest dues on the 91-day period from September 15 to December 14 were not paid, the company said in a regulatory filing.
In October 2018 PSU Watch had reported that the government and the appointed board of directors of IL&FS have planned a series of quick asset sales in order to turn around the company’s drowning fortunes. ITNL was in talks with the Singapore-based Cube Highways and Infrastructure Pte. Ltd to sell some of its road projects. Sources aware of the matter at the time said the BOT road assets were valued at $1.2 billion