Bangalore Elevated Tollway, a highway construction special purpose vehicle, has won Rs 492 crore in awards in an arbitration case against National Highway Authority of India (NHAI). IL&FS Engineering, which holds 24% stake in the company, is expected to receive around Rs 118 crore from the proceeds, IL&FS said.
"The arbitration tribunal has given a majority award for an amount of Rs 492 crore (Rs 250 crore as principal and Rs 242 crore as interest), towards the claim filed by Bangalore Elevated Tollway, on November 27," the company said.
Bangalore Elevated Tollway was created for development of a four-lane elevated and upgradation of another section to a six-lane road in Bangalore. In 2006, NHAI, the Indian highway authority, had awarded the project to the company on a build-operate-transfer (BOT)-Toll basis. Bangalore Elevated Tollway later filed a claim against the NHAI for additional expenses incurred on account of an extension in the construction period.
The cash-strapped infrastructure major, IL&FS, had received bids worth around Rs 13,000 crore for 10 of its road assets. In a statement, the company said that it was evaluating the offers in consultation with its advisors. Uday Kotak, the IL&FS board's non-executive chairman, in September said he was hopeful of recovering at least 50% of the total debt of `94,216 crore owed to domestic lenders by March next year.