India's Exim Bank rejects IL&FS's plan to sell Dubai JV Park Line
'Debt-ridden' Indian firm reportedly compelled to halt stake sale process after Exim Bank rejects NOC request
“Debt-ridden” Indian company Infrastructure Leasing & Financial Services (IL&FS) – one of the firms involved in Park Line, which was contracted to install a robotic automated parking system at Dubai Courts in 2016 – has had to stall the process to sell its joint venture in Dubai after Export Import Bank of India (Exim Bank) declined to provide a no-objection certificate (NOC) for the transaction.
Park Line was formed as a special purpose company to deliver the project.
IL&FS’s group firm, IL&FS Transportation Networks, (ITNL) reportedly reached an understanding in June 2019 with Next Gen Parking – a KBW Investments company and ITNL’s partner in Park Line – for the stake's sale under the ‘first right of refusal’ provision by the JV partner.
The smart parking building was planned to provide 1,232 parking spaces, with 10 entrance and exit points. A total of 950 smart parking spaces would be allocated for the public, and 373 for employees, UAE state news agency Wam reported in March 2018.
Construction Week’s sister title Arabian Business reported that India’s Corporate Affairs Ministry was IL&FS’s nodal ministry “after the crisis-hit leasing major was taken over by the Indian government late last year”.
A senior federal official from the ministry reportedly said: “The sale process is stalled for now due to the refusal of Exim Bank to issue NOC for the deal to go through.”