IL&FS, which had sold the Chenani-Nashri Tunnel (CNTL) project in J&K to Cube Highways & Infrastructure last December for Rs 3,900 crore, is seeking a new buyer or a revised offer from the Singaporean highways player after the expiry of the sale pact and also an increase in valuation that has jumped to over Rs 5,200 crore now.
CNTL is a subsidiary of IL&FS Transportation Networks, which had signed a Rs 3,900-crore share purchase agreement with Cube in August 2020 but regulatory, including NCLT and NHAI, approvals came late, leading to the agreement getting lapsed this August.
The tunnel, which cuts the travel time between Jammu and Srinagar by 31 kms, was put on the block in December 2018 after the parent IL&FS went belly up two months before.
The two-lane Chenani-Nashri tunnel was launched with a project cost of Rs 5,269 crore in March 2017 with concession period up to March 2032. The project got over two dozen bidders and Cube's Rs 3,900 crore offer was the highest."We confirm that the CNTL-Cube share purchase agreement has expired and the revised fair value is higher than earlier valuation. But we cannot share specifics on the valuation or next the steps as the matter is subjudice," an IL&FS spokesperson told.