Gayatri Projects successfully receives Rs208cr under Govt's monetisation scheme against bank guarantees

The company plans to utilize the new claims towards repayment of term loans.

Nov 24, 2020 09:11 IST India Infoline News Service

Gayatri Projects
Gayatri Projects on Tuesday said that the company has successfully monetized and received Rs208cr net of statutory deductions (Gross Rs219cr) under the GOI scheme of monetisation of 'under litigation arbitral award' against bank guarantees.

According to Gayatri's regulatory filing, the company along with its JV partner had been awarded an arbitration claim worth Rs703cr including interests for its road project in Nagaland and GPL portion in the same was Rs264cr. The company has now received 75% of the claim (including further interest of Rs27.74cr for the period from the date of award till the date of payment) after furnishing bank guarantees of a similar amount.

Gayatri today said, "This inflow is in line with company's guidance of an inflow of Rs2-3B under the GOI award monetisation scheme/conciliation scheme."

The company plans to utilize the new claims towards repayment of term loans.

With this, the company's long-term debt would reduce by 27% from Rs764cr in H1FY21 to Rs556cr.

"This is the first in a series of award monetization's company expects to receive under the various settlement schemes of GOL The company remains committed towards balance sheet strengthening and reduction of long-term debt to a negligible amount," said the company.

At around 3.22 pm, Gayatri Projects was trading at Rs33.75 per piece down 0.88% on Sensex. 

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