All six creditors of Essel Infraprojects’ Ludhiana-Talwandi Toll Road have accepted NARCL’s ₹270 crore offer to settle the company’s ₹988 crore debt. This comes after no other bids were made against NARCL’s proposal in April. Lenders are now preparing an agreement to finalize the transaction, which is expected to be NARCL’s first acquisition of the fiscal year.
“All lenders approved the deal since there were no competing bids. Final documents are being prepared, and an agreement will be signed this month to transfer the debt to NARCL,” said a source familiar with the matter.
NARCL’s offer follows a 15:85 payment structure, where 15% is paid in cash, and the remaining 85% is in security receipts guaranteed by the government.
The Ludhiana Toll Road project was meant to build a 78-km four-lane stretch between Ludhiana and Talwandi Bhai by September 2014. However, delays turned it into a non-performing loan. PNB leads the lending group with an outstanding debt of ₹264 crore, joined by Central Bank, Indian Overseas Bank, Bank of Baroda, Canara Bank, and IIFCL.
By the end of fiscal 2024, NARCL had acquired 18 stressed accounts totaling ₹92,510 crore in debt. An additional 24 accounts worth ₹76,000 crore are expected to be acquired this fiscal year. Progress has been slow since this is the first time a government-backed bad bank is operating in India.
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