IL&FS Transportation Network to get Rs 425 cr compensation from NHAI

IL&FS Transportation Networks said Tuesday state-run NHAI would pay it a compensation of Rs 425 crore for losses suffered by it due to cost overrun in a project in Uttar Pradesh.

NHAI and IL&FS Transportation Networks have reached a settlement over various claims filed against NHAI in relation to the project, the company said in a BSE filing.

"... at the conciliation committee meeting of independent experts appointed by NHAI held today, a settlement agreement was signed by Moradabad-Bareilly Expressway Ltd (MBEL), a subsidiary of company on various claims filed against NHAI in relation to the work of development, maintenance and management of a highway from Moradabad to Bareilly in UP," IL&FS Transportation Networks, part of the IL&FS group said.

MBEL will be paid a claim compensation of Rs 425 crore by National Highways Authority of India (NHAI) for losses suffered by it on account of the cost overrun for development of the project, it said.

The company also said that "the agreement is not subject to any appeal by NHAI".

Shares of the company today ended down 8.07 percent at Rs 25.05 apiece on BSE.