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Gurgaon E’way: Banks may take a Rs 1,400 cr haircut

Gurgaon E’way: Banks may take a Rs 1,400 cr haircut
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When the government takes over the Delhi-Gurgaon Expressway from the concessionaire DS Construction, the lender banks to the project might be forced to take a haircut of more than Rs 1,400 crore. Why because the National Highways Authority of India (NHAI) has informed the consortium of banks, led by IDFC Bank, that the Authority would pay the lenders only Rs 175-200 crore if it takes over the project.

The lenders have an exposure of combined Rs 1,600 crore in the project. The decision would mean a hit of Rs 1,400 crore or more, said a government official. The consortium includes Punjab National Bank, Oriental Bank of Commerce and State Bank of Bikaner and Jaipur, besides IDFC.

NHAI had terminated the contract awarded to DS Construction earlier this year but the matter is sub judice at present, as the concessionaire had got a stay on the order from the Delhi High Court.

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