IL&FS plans sale of some road assets as InvIT transfer faces hurdles

The IL&FS group is considering selling a few of its road assets, as its board is facing challenges to transfer those to an infrastructure investment trust (InvIT) as planned.

IL&FS had plans to transfer around a dozen road assets to the InvIT, Roadstar Infra Investment Trust (RIIT). While it has already transferred five of the assets, the transfer of another five is delayed due to legal challenges by lenders and other issues. The process of transferring one asset is progressing, while it has excluded another from the process.

The board is now considering alternative methods to monetise these assets even as it is retaining the target of raising ₹61,000 crore as part of the group's debt resolution programme.


Meanwhile, IL&FS has decided to list RIIT, which has acquired five assets from IL&FS Transportation Networks. The assets transferred to RIIT are Moradabad Bareilly Expressway, Sikar Bikaner Highway, Hazaribagh Ranchi Expressway, Thiruvananthapuram Road Development Company and Pune Sholapur Road Development Company.

"The IL&FS board has decided to go ahead with listing the Roadstar Infra Investment Trust ... RIIT is also in the process of acquiring one more asset subject to requisite approvals," an IL&FS spokesperson said.

The National Company Law Tribunal (NCLT) had given approval to IL&FS' plan to transfer its Phase 1 special purpose vehicles on September 15, 2021 and Phase 2 SPVs on October 14, 2022. Out of the SPVs, only five have been successfully transferred to the InvIT.

Among the other assets, IL&FS has decided to exclude East Hyderabad Expressway from the transfer to InvIT due to delays and the expiration of its concessions in December 2022.

IL&FS is exploring alternative resolution mechanisms for its other assets - Barwa Adda Expressway and Baleshwar Kharagpur Expressway. These SPVs are facing disputes with their lenders, delaying the restructuring of their debts.