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An anchor offer by Assets Care & Reconstruction Enterprises (ACRE) to SBI for loans to SEW Krishnagar Baharampore Highways in West Bengal has triggered a Swiss challenge auction, the people said.
Inviting counter-bids, SBI said in a notice that it has received an anchor offer of ₹111.6 crore against its outstanding loans of ₹187.2 crore to the SEW Krishnagar Baharampore Highways (SKBHL).
ACRE’s offer equates to a recovery of 60% for the country’s largest bank. SBI will hold e-bidding on June 7, the notice stated.
SBI had initially invited bids for the road project in mid-October last year, which was followed by months of negotiation with the ARC.
ACRE did not respond to ET’s request for comment.
ACRE had acquired ₹50 crore loans of SKBHL from Indian Overseas Bank for ₹27 crore a year ago.SKBHL is a special-purpose vehicle of SEW Transportation Networks, which in turn is a 100% subsidiary of SEW Infrastructure.
National Highways Authority of India (NHAI) had awarded the parent company SEW Infrastructure to convert a 78-km two-lane stretch into four lanes between Krishnagar and Bahrampore in West Bengal state.
The highway is crucial to ensure connectivity between Haldia and Calcutta ports to North Bengal and the Northeastern states.
SKBHL had pegged the total project cost at ₹1,155 crore and had originally planned to complete the project by July 2014. “However, owing to delays in project implementation, land acquisition, lag in equity infusion by the promoters, and delay in disbursement of the term loan, the project has been delayed by almost six years,” according to a rating report by Crisil dated March 31, 2022.
The rating company, which had rated ₹600 crore loans, stated that the issuer is non-cooperating in the statement.
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