IL&FS Transportation Networks Ltd (ITNL), a road construction arm of IL&FS, is constructing the strategic Zojila tunnel that will provide all-year connectivity between Srinagar and Leh.
Apart from the Zojila order, ITNL also has a healthy order book but debt continues to be an overhang. K Ramchand, managing director at ITNL spoke to CNBC TV18 on order book and company's outlook.
“We have firmed up our procurement plan, we have firmed up our planning and scheduling for the project, we are in the process of setting up our camp which is – it has to be at a place which is avalanche-free,” he said.
“We are also in talks with petroleum companies and we are on target as much as we had scheduled it. We should be in a position to complete this project. This year we are not targeting too much of a revenue from this project because we are not sure that we will be able to achieve at least 8-10%, which is when we start booking margins on projects. I don’t see any revenues coming in from the Zojila project but we may get a fair amount of liquidity from this project,” he added.
“We are not bidding for any BOT (build–operate–transfer) project as such. We are on a path where we want to consolidate what we have on our books,” said Ramchand.
“Our debt levels went up by about Rs 2,000 crore from what we had anticipated when the year opened,” he further mentioned.
“Debt has gone up, we are aware of that and we are also aware that we need to bring that down,” Ramchand added.