The National Highways Authority of India may acquire incomplete projects of the debt-laden Infrastructure Leasing & Financial Services (IL&FS), a senior government official said.
“NHAI has flagged issues on projects of IL&FS to the ministry of roads, transport and highways,” the official said. “There can be negotiated settlement for incomplete projects since liquidity is a problem… Efficient management of cash flows and its deployment is a challenge for IL&FS,” he said.
The official said that the valuation of incomplete IL&FS projects will be done by an independent agency.
“NHAI can either retain the entire project or even call for bids for balance work,” the official said. Options of settling arbitration of NHAI is also being considered, the official said adding that the government wants a well defined dispute settlement mechanism so that it hastens the claim settlement of IL&FS.