17 March 2019: Beleaguered Infrastructure Leasing & Financial Services (IL&FS) Group will receive first set of bids under asset monetisation process on Monday as part of resolution process proposed by Uday Kotak-led new board, suggested media report.
The company’s board will later consider bids for Rs 8,000 crore renewable energy business that was put on the sale in November 2018, PTI quoted source as saying.
The government had formed banker Uday Kotak-led board after NCLT approved a resolution of the liquidity crisis at IL&FS in wake of its bulky debt of Rs 94,000 crore.
The renewable energy business constitutes of operating wind power plants with an aggregate capacity of 873.5-MW, and under-construction such plants with 104-MW capacity. It also includes the solar power business, under which it has around 300-MW of under-construction projects, the agency reported.
This would be the first set of bids that will be opened under the asset monetisation process as part of the resolution process by government-appointed board, the agency said. The board also proposed to cut two-thirds of the jobs across the group as part of its initiatives towards rationalised manpower with a view to reduce costs.
The cash-strapped company had decided to sell assets across businesses, including roads, education, renewable energy, and broking in November last year, it added.
As per the sources, nearly twenty five companies participated in the expression of interest sought by the company that ended on December 10, 2018.
The IL&FS group is facing serious liquidity crisis and has defaulted on interest payment on various debt repayments since August 27.
Last month, the Enforcement Directorate (ED) questioned former ILF&S group chief financial officer Maharudra Wagle and also carried out raids across multiple locations in Delhi-NCR and Mumbai concerning financial irregularities in the company.
The ED had registered a case against the IL&FS’s top officials including its former chairman Ravi Parthasarathy, under the Prevention of Money Laundering Act (PMLA). The probe agency reportedly searched the premises of the infrastructure lender’s former officials and seized various property documents and incriminating records/media.
Recently, an audit conducted by Grant Thornton revealed various financial irregularities in company’s deals with financial implications of over Rs 13,000 crore during special audit conducted by the firm.