In a significant development, the National Asset Reconstruction Company Limited (NARCL) has secured approval from all six creditors of Essel Infraprojects’ Ludhiana-Talwandi Toll Road (LTTRPL) to settle the company’s Rs 9.88 billion debt for Rs 2.70 billion. The creditors, having received no competing bids, are finalising the assignment agreement, making this NARCL’s first acquisition of 2024-25. This transaction follows NARCL’s typical 15:85 structure, with 15 per cent of the consideration paid in cash and the remaining amount in government-guaranteed security receipts.
The project, intended to build a 78 km four lane stretch on National Highway-95, became a non-performing loan due to delays. Punjab National Bank, with around Rs 2.64 billion outstanding, leads the creditors, which include Central Bank, Indian Overseas Bank, Bank of Baroda, Canara Bank, and India Infrastructure Finance Company Limited (IIFCL).