Om Metals Infra Updates On Bhilwara Jaipur Toll Road Company
Om Metals Infraprojects Limited informs you that M/s Bhilwara Jaipur Toll Road Private Limited, where M/s Om Metals Infra projects Limited has a stake of 49% with Rs. 50.90 Cr investment in equity and Rs. 65 cr in subordinate debt, has served a Notice of Termination of the Concession Agreement in respect of its project to carry on the business of development of two Lane road from Jaipur to Bhilwara via Malpura, Kekri & Shahpura (SH-12) on DBFOT (design, built, finance, operate & transfer) basis through PPP model on account of material breaches of terms and conditions of concession agreement on the part of State Government, Rajasthan. The Termination Notice was served by M/s Bhilwara Jaipur Toll Road Private Limited due to material default on the part of State Government to cure / redress breaches of the Concession Agreement notified by M/s Bhilwara Jaipur Toll Road Private Limited vide its 30 days cure period Notice dated July 24, 2018 pursuant to the Concession Agreement. The Project is operational since December 2014.
As per termination of Concession Agreement on account of default by State Govt., Rajasthan, the Govt. is liable to pay as per clause 37.3.2. termination payment of the following -
(i) Debt Due
(ii) 150% of adjusted equity
and all other outstanding compensation claims as per clause 35.2 and 35.5 of the agreement.
In exercising its legitimate rights, Mls Bhilwara Jaipur Toll Road Private Limited has accordingly terminated the Concession Agreement and has sought due termination payment equal to 150% of adjusted equity and debt due as per formula laid down in Definition sections of Concession Agreement.