Infrastructure finance provider IL&FS has decided to sell its entire 26 percent stake in NTBCL, the company that operates the DND flyway connecting Noida to Delhi. IL&FS has decided to monetize its stake in DND Flyway. This flyway was built in the year 2001 as a road to provide hassle-free transportation from Delhi to Noida.
According to language news, the responsibility of ownership and maintenance of this flyway rests with Noida Toll Bridge Company Limited (NTBCL). IL&FS holds about 26 percent stake in NTBCL while the Uttar Pradesh government holds five percent.
Bids will be invited soon
According to the news, the remaining shares of the listed company are with the investors. Sources said the board of directors of IL&FS has decided to adopt a public process to sell its stake in this road project and bids will be invited under this initiative soon. Confirming the decision, a spokesperson of the infrastructure company said that monetization of road assets is as per the agreed resolution framework. Sources said that the company will use the proceeds from stake sale to reduce its debt burden.
Total debt of Rs 57,000 crore has been resolved
IL&FS has so far resolved total debt of Rs 57,000 crore and has repaid the total debt of group companies worth Rs 36,000 crore. This also includes a total payment of Rs 10,000 crore under interim distribution. NTBCL is a stock exchange listed company. In the year 2016, Allahabad High Court had abolished toll on DND due to which NTBCL is facing financial crisis. The company has challenged this decision in the Supreme Court.
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