Government may rebid or buy IL&FS’ road projects

NEW DELHI: The road transport and highways authority is looking to either rebid for or acquire incomplete national highway projects being undertaken by the debt-ridden Infrastructure Leasing and Finance Corporation (IL&FS).

These projects may be acquired or rebid by the National Highways Authority of India and National Highways and Infrastructure Development Corporation.

IL&FS is currently undertaking two important projects for the government in the state of Jammu and Kashmir. These are Z-Morh tunnel and Zojila Pass tunnel project.


The work on these projects has almost come to a halt since July.

There are several highway projects that are currently 70-80% complete. The NHAI can ensure that they’re completed immediately and toll revenues start getting generated.

The government is looking at setting up a panel to look into the acquisitions and also settle the ongoing arbitration cases between the NHAI and IL&FS.

Last week, road transport and highways minister Nitin Gadkari told ET that the government would ensure that all national highway projects undertaken by IL&FS are completed as per the timeline. “No project will be stuck and we will be playing the role of a facilitator wherever possible. The National Highways Authority of India (NHAI) will pitch in to get the projects moving,” he said.

The minister had also said that any dues from the highways ministry owed to IL&FS or any of its subsidiaries would be cleared on fast track along with early resolution of the on-going arbitration cases.

IL&FS is currently reeling under a debt of Rs 91,000 crore. The government has already appointed a new six-member board to steer the group out of crisis.