A group of lenders led by State Bank of India (SBI) have invited bids to replace Lanco Devihalli as the concessionaire of an 80-km stretch along NH-48 in Karnataka. The special purpose vehicle is the concessionaire of the operational build-operate-transfer toll road project.
It has been reported that subsidiaries of the company, Lanco Hoskote Highways Limited (LHHL) and Lanco Devihalli Highways Limited (LDHL), have been incurring losses since the start of operations. The company announced in a report that the management is taking steps to improve profitability. Currently, the project’s debt as on March 31 is about Rs340 crore (US$47.84 million). Lanco Infratech was one of the 12 companies on the Reserve Bank of India’s first list of non-performing assets (NPAs) mandated for resolution under the Insolvency and Bankruptcy Code (IBC).
To support and assist in the process, SBI Capital Markets (SBI Caps) has been appointed by lenders to identify an entity capable to replace the existing concessionaire.