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| Exchange Disseminated Time 24/09/2015 19:26:53 | The Exchange had sought clarification from the Company with respect to news appearing in Business Standard on September 24, 2015 titled "Rating slashed to default for GMR's road project"
The Company replied stating "This is in reference to the recent reports in Media regarding the rating downgrade for long term loans to GMR Hyderabad Vijaywada Expressway Pvt Ltd ("GHVEPL"). Company has been making payments to all it's lenders and in line with the RBI guidelines the asset is standard.
The loans availed by the GHVEPL are without recourse to either GMR Infrastructure Limited or any other group Company.
GHVEPL is located in the state of Telangana and Andhra Pradesh. Post bi-furcation of the state, both the state governments have formulated the sand mining policy, banning movement of minor minerals (especially sand) across the state border. Further, states have imposed levy of new taxes like octroi and entry tax on movement of goods across the state border. Due to such changes in the policies, the commercial vehicle traffic on account of movement of sand has drastically reduced from the projected traffic. Commercial vehicles contribute significant amount of revenues. This has severely impacted the revenues and cash flow of the company resulting in slight delay in payments.
The Company is in discussion with the authorities for identifying an amiable resolution to the issues which are force majeure as per the concession agreement." |
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