MBL Infrastructure Ltd., a leading civil engineering and infrastructure company, has announced a significant development with the approval of its resolution plan for MBL (MP) Toll Road Company Ltd. (MPTRCL), a wholly owned subsidiary. The approval was granted by the Hon’ble Adjudicating Authority on 12th September 2025, marking a major milestone in the resolution process.

Under the terms of the approved resolution plan, MBL will infuse ₹9.11 crore in equity into MPTRCL. This includes the earnest money deposit (EMD) and performance security of ₹2 crore already placed in an escrow account. The total infusion, along with MPTRCL’s existing cash, bank balances, liquid assets, forfeiture amounts, and annuity accruals as of 30th June 2025 (net of CIRP expenses till approval date), will be used to make a full and final settlement with Punjab National Bank (International) Ltd. (PNBIL), the sole secured financial creditor of MPTRCL.

Upon settlement, all liabilities of MPTRCL will be extinguished, transforming it into a debt-free company. Both MBL and MPTRCL will have no further claims against PNBIL, and vice versa, ensuring a complete closure of financial obligations.

Following this development, the management and control of MPTRCL will now vest with its Board of Directors, marking the end of the resolution proceedings and the beginning of a new chapter for the subsidiary.

MPTRCL was established as a special purpose vehicle (SPV) for the execution of the Waraseoni-Lalbarra Road project in Madhya Pradesh under a Build-Operate-Transfer (BOT) Toll + Annuity model, as per a concession agreement signed with the Madhya Pradesh Road Development Corporation Limited (MPRDCL) on 7th December 2011. Under this agreement, MPTRCL is entitled to receive semi-annual annuities of ₹3.26 crore from MPRDCL, in addition to toll revenues from road users.

The resolution plan ensures that, after meeting the settlement obligations, any surplus arising from toll fees, annuities, receivables, or arbitration claim proceeds will be available to MBL. This creates opportunities for improved financial stability and growth prospects for the parent company.

MBL Infrastructure Ltd., incorporated in 1995 and listed since 2010, has built a strong reputation for executing large-scale infrastructure projects across India. Its portfolio includes roads and highways, BOT and O&M projects, housing and urban infrastructure, railway and metro works, and other civil engineering assignments. The company has a pan-India presence and has delivered numerous projects across multiple states.

The approval of this resolution plan is not only a positive development for MBL but also for its investors, creditors, and stakeholders. It demonstrates the company’s commitment to resolving debt issues, strengthening its subsidiary’s balance sheet, and creating a sustainable business model for long-term growth.

Industry experts note that the move will further consolidate MBL’s position in the infrastructure sector, particularly in the road and highway domain, where BOT and annuity projects remain a key driver of revenue.

MBL has also cautioned that certain forward-looking statements in its press release may be subject to risks related to regulatory changes, political or economic developments, technological risks, and other factors. However, the management has reiterated its commitment to transparency and compliance, assuring stakeholders of its focus on business continuity and growth.

In conclusion, with the successful approval and implementation of this resolution plan, MBL Infrastructure Ltd. has turned MPTRCL into a debt-free subsidiary, strengthening its financial standing, operational viability, and long-term outlook.

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