Ramky Infra enters Rs 1,200 crore-settlement with Srinagar Banihal road asset lenders

Ramky Infra said SBEL was also financially unviable owing to the loss of annuities linked to the extension of time and various claims against it by vendors and contractors. (Representative Image)

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26 Aug, 2025 12:21

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Ramky Infrastructure Ltd, part of the Hyderabad-based Ramky group, has entered a one-time settlement (OTS) of Rs 1,200 crore with lenders of its road asset subsidiary Srinagar Banihal Expressway Ltd (SBEL).

The infrastructure firm, which posted revenues of Rs 1,780-crore during 2021-22, has been in talks with investors over the last several years to sell this road asset, which turned into a non-performing asset (NPA) for the last five years owing to cost and time overruns.

Though the company passed a resolution nearly a decade ago to divest its road assets to become an asset-light company, and retire the debt on both consolidated and standalone balance sheets to bring down interest costs significantly, it could not succeed owing to various reasons.

In a communique to stock exchanges on March 31, Ramky Infra said it has reached a debt settlement agreement with the lenders for SBEL, which was established for undertaking four-laning of the Srinagar Banihal section of National Highway No 1A in Jammu and Kashmir.

Ramky Infra said SBEL was also financially unviable owing to the loss of annuities linked to the extension of time and various claims against it by vendors and contractors.

“As a result, the outstanding liabilities have become more than the financial assets to service the debt obligation. Therefore, the company has approached the lenders to provide a “one-time settlement” of its debt obligation relief to revive and sustain the company’s operations,” said Ramky Infratech.

On evaluating the current financial capabilities of SBEL, the lenders have accepted the OTS of the current outstanding for Rs 1,200 crore, said the company, adding that the payment of the settlement amount must be completed before September 30, 2023.