Dec 10, 2018 07:34 AM IST | Business

Government to monetise 19 road projects of IL&FS, expects to raise Rs 35,000 crore

The government expects such a move will help in raising Rs 30,000-35000 crore, which will substantially reduce the debts of the company.

On the other hand, the government has decided to invite EoIs only for road projects that are completed.

Government to monetise 19 road projects of IL&FS, expects to raise Rs 35,000 crore

In a bid to reduce the debt burden of Infrastructure Lease & Financial Services Ltd (IL&FS), the government has decided to start floating expression of interests (EoI) for its road projects, said sources familiar with the matter.

The EoIs will be floated in the next ten days, sources told CNBC-TV8, requesting anonymity.

The government has identified “close to 19 road projects which will be put out on the block,” the sources added.

The government expects such a move will help in raising Rs 30,000-35000 crore, which will substantially reduce the debts of the company.

The estimated IL&FS outstanding debt is about Rs 90,000 crore.

On the other hand, the government has decided to invite EoIs only for road projects that are completed. “Infrastructure firms will have an opportunity to bid for all or individual projects,” the sources said.

Besides, the new board of IL&FS is also in talks with the National Highway Authority of India (NHAI) for sales of incomplete road projects.

CNBC-TV18 on Thursday reported that the government is also planning to move the National Company Law Tribunal (NCLT) to disgorge the assets of errant managers in the distressed IL&FS. With this move, the government aims to recover the money that senior officials in the company made by way of managerial remuneration when group entities were struggling to stay afloat.

Profiting by remuneration that is not in sync with the financial performance of IL&FS was not justifiable, said a government official.

The government will seek disgorgement of the “excessive executive pay” that nine senior officials have made. “It’s daylight robbery,” said the official quoted above.

Published Date: Dec 7th, 2018 11:45 PM | Updated Date: Dec 10, 2018 07:34 AM IST