Cash Strapped Infrastructure Major IL&FS Set To Receive Rs 700 Crores Boost From NHAI As It Looks To Shed Debt Woes

In some welcome news for the beleaguered infrastructure major IL&FS, the company is set to receive Rs 700 crores from the National Highways Authority of India (NHAI). This sum is being paid in lieu of a road project undertaken by the road development subsidiary of the infrastructure major in Maharashtra.

The payment from NHAI could not have come at a better time for IL&FS as reports have emerged that the company defaulted on the interest payment due on its non-convertible debentures. This default also comes on top of reports which state that the infrastructure major is behind on payments relating to commercial paper worth Rs 300 crores and on inter-corporate deposits worth Rs 450 crores.

The infrastructure major had already received a settlement of Rs. 425 crores from the NHAI earlier in the month and is in the process of monetising 14 of its road projects. It is expected that the infrastructure company would conclude the sale of seven of these assets before the end of October as it looks at asset sales to minimise its debt liability.