After the financially-stressed Infrastructure Leasing & Financial Services (IL&FS) took leave of the contract to build the crucial Zojila tunnel project in Jammu and Kashmir, the Union government is working to reissue the tender, reports Business Standard.
This will be the third time that Union Road Ministry's subsidiary, National Highways and Infrastructure Development Corporation (NHIDCL), will call for fresh bids for the 6,809-crore project.
IL&FS, a non-banking financial company with a debt of over Rs 91,000 crores, had won the contract in 2017 to build the country’s longest road tunnel on the Srinagar-Kargil-Leh national highway.
Running for a length of at 14.2 km the tunnel would be situated at an altitude of 11,578 feet. The tunnel, which is expected to take seven years to build, will provide all-weather connectivity between Srinagar, Kargil and Leh.
IL&FS, one of India’s top NBFCs that lent heavily to big infrastructure projects, defaulted on its loan repayments in September 2018. This default triggered a market-wide liquidity crisis in the Indian financial system.
Following the takeover, the government moved swiftly and replaced the company’s board with its nominees, including Uday Kotak, the government's banking crisis manager.
It was reported on 2 January (2019) that the debt-laden non-banking financial company (NBFC) major, IL&FS, had invited bids to sell its real estate assets to raise funds and trim its massive debt.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.