Om Infra upgrades on associate SPV Bhilwara Jaipur Toll Road; Stock trades higher

Subsequent to termination of concession agreement , Arbitrator had given an interim award by which PWD was required to pay the debt of Rs191cr to lenders of Road project.

Jun 17, 2021 01:06 IST India Infoline News Service

Bhilwara Jaipur Toll Road Ltd., an associate SPV of the Om Infra Limited with 49% shareholding, is in the business of Toll Road Operation and Maintenance in the State of Rajasthan.

The company provides update regarding the SPV to the stock exchanges.

According to the company, "The Government of Rajasthan wef 1st April 2018, had exempted the private vehicles to pay toll in 0-212 km state highway from Jaipur to Bhilwaraand on account of this daily toll collection was badly affected and subsequently Bhilwara Jaipur Toll Road had terminated the concession agreement for breach of contract on the part of Govt of Rajasthan and submitted a claim of Rs.578cr to Arbitrator."

Subsequent to termination of concession agreement , Arbitrator had given an interim award by which PWD was required to pay the debt of Rs191cr to lenders of Road project.

In litigation process , Hon’ble High court of Rajasthan in its order dated 12th October '20 directed PWD to take the custody of Road and pay Rs191cr to lenders, it added.

Public Works Department of Govt. Of Rajasthan in partial compliance of Court order has taken over the operation and maintenance of the road and the toll plazas and custody of Road today on 16th June 2021 and has also paid Rs15.79cr to lenders in escrow account out of Rs191cr.

The matter of termination of concession agreement and our compensation is in dispute resolution process with Honble Arbitrator and is pending for final award. The lenders have moved the application to Hon’ble High Court of Rajasthan for full payment of debt due by PWD which is pending in the court and is expected to come up for hearing in next available date, further confirmed by company.

At around 1:10 PM, Om Infra was trading at Rs26.90 per piece higher by 0.37% on Sensex.

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