New Delhi, Dec 3 (IANS): The IL&FS Group has received Justice (retd) D.K. Jain's approval for sale of Chenani-Nashri Tunnelway Ltd (CNTL) to Cube Highways and Infrastructure II Pte Ltd (Cube).

Justice Jain has been appointed to supervise the operation of the resolution process undertaken by debt-laden IL&FS.

CNTL is a wholly owned subsidiary of ITNL (an IL&FS Company) that jointly, along with its nominees, holds 100 per cent equity of CNTL that has been classified as an amber company.

IL&FS had invited EoIs for sale of its road assets in December 2018 and had received over two dozen EOIs from various companies for these assets.

Cube had bid about Rs 3,900 crore for the entire 100 per cent stake.

The company will now seek approval from the NCLT and the NHAI to complete the sale transaction.

On completion, this sale will address Rs 4,910 crore of IL&FS debt, the highest portion outside the InVIT fold.

Cube was the highest bidder for CNTL and the same was ratified by committee of creditors (CoC) of the ITNL and the CNTL.

The proceeds of the sale would be distributed in accordance with the resolution framework approved by the NCLAT.

In addition to the sale of certain road assets, including JSEL and CNTL, IL&FS has already got SEBI "in-principle" approval to form INVIT for 11 road assets in two phases.

Part of the 286 KM long four-landing of the Jammu-Srinagar national highway, the Chenani-Nashri tunnel project provides connectivity between Chenani and Nashri and cuts down 31 kms of the Jammu-Srinagar distance.

The two-lane tunnel, with a parallel escape tunnel, was launched with a project cost of Rs 5269 crore in March 2017 with concession period upto March 2032.

Sale of road assets is part of the new IL&FS board's strategy to resolve over Rs 99,000 crore outstanding debt as of October 2018.