Sources in India suggest troubled Indian company could offload its stake in $79 million project
A joint venture (JV) to provide a robotic automated parking system at Dubai Courts could be dissolved, according to government sources in India.
ITNL Infrastructure Developer LLC, a subsidiary of troubled Indian company IL&FS Transportation Networks Ltd (ITNL), had launched Park Line LLC, to partner with NextGen Parking (NGP) for the $79 million project, which was secured in 2016.
At the time, IL&FS described it as the first Private Finance Initiative project in the transport infrastructure sector in the country.
But sources say NextGen is likely to buy out its partner.
“ITNL’s partner in the Dubai JV has shown interest in buying out its stake under the 'first right of refusal' provision. The matter has been referred to the team under retired Supreme Court judge Justice D K Jain, who is supervising the entire debt resolution process of Infrastructure Leasing & Financial Services Ltd (IL&FS),” a senior federal corporate affairs ministry official has told Arabian Business.
The Dubai Supreme Court project involved developing 1,232 car parking spaces along with the ancillary retail and office space of approximately 300,000 Sq. ft., including the Supreme Court area, on a design, build, finance, operate and transfer basis with a concession period of 30 years.
In March this year it was reported that the crisis-hit IL&FS had proposed selling its stakes in the company’s overseas ventures, including Dubai and UAE, either through the ‘first right of refusal’ provision or through the bidding process applicable in the respective countries where these ventures operate, as part of its debt resolution process.
“The new management team at IL&FS wants to follow a legally sound and transparent process for this sale process and hence referred the matter (sale of stake in the Dubai venture) to Justice Jain,” the ministry official said.
Arabian Business has contacted NGP for its response on its plans to buyout ITNL’s stake in Park Line LLC.
Abu Dhabi Investment Authority (ADIA) is the third largest shareholder in IL&FS, holding a 12.56 percent stake as per IL&FS’s 2018 annual report.