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  1. Underperforming Godhra Tollways set to be bought for Rs 300 cr by IDFC Alternatives

Underperforming Godhra Tollways set to be bought for Rs 300 cr by IDFC Alternatives

Godhra Tollways is an 85-km expressway project that runs from Godhra in Gujarat to the Madhya Pradesh border

By: | Mumbai | Published: December 6, 2016 6:37 AM

IDFC Alternatives is set to buy the under-performing BSCPL Godhra Tollways Limited (BGTL) for R300 crore.

BSCPL Godhra Tollways Limited (BGTL) is an 85-km expressway project that runs from Godhra in Gujarat to the Madhya Pradesh border, constructed on a design-build-finance-operate-transfer (DBFOT) basis by BSCPL Infrastructure under the national highways development (NHDP) III project.

BSCPL was formerly known as B Seenaiah & Company (Projects) Limited and is promoted by an ex-MLA from Andhra Pradesh, Bollineni Krishnaiah.

The BGTL project was completed at a cost of about R655 crore. It has an average daily toll collection of R19-20 lakh, according to company sources and compares unfavourably with the internal estimates of the company of R29-30 lakh toll collection daily. The concession period of the project is till May 2037.

The company has been unable to service its debt obligations due to which ratings agency ICRA had recently suspended its ratings on the company. In a report filed in December 2014, ICRA said it had “revised the suspended rating for the R525 crore term loans of BSCPL Godhra Tollways (BGTL) to ICRA D. Further, the rating suspension continues. The rating revision takes into account irregularities in debt servicing… it has recently come to ICRA’s knowledge from public sources that there have been irregularities in debt servicing by the company in the past.”

According to sources, Brookfield was also in contention for the asset.Both IDFC and BSCPL’s chief financial officer AVBR Narasimhan declined to comment.

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