In a significant step toward revitalizing stalled infrastructure assets, MBL Infrastructure Ltd. has announced its decision to infuse ₹91.1 million into the Madhya Pradesh Toll Road project, following the formal approval of its resolution plan by the Adjudicating Authority under the Insolvency and Bankruptcy Code (IBC). The plan, submitted for MBL (MP) Toll Road Company Ltd., marks a major milestone in the company’s turnaround strategy and reflects its commitment to restoring operational viability in key transport corridors.
The resolution plan, which was approved earlier this month, is part of a broader restructuring effort aimed at reviving the toll road asset that had been under financial stress for several years. With this infusion, MBL Infrastructure is expected to resume maintenance, toll collection, and operational upgrades along the designated stretch, which plays a vital role in regional connectivity across Madhya Pradesh.
Background: A Road to Recovery
MBL (MP) Toll Road Company Ltd. had been undergoing insolvency proceedings under the IBC framework, with creditors seeking a viable resolution to recover dues and restore asset functionality. The toll road, originally developed under a Build-Operate-Transfer (BOT) model, faced challenges due to delayed payments, traffic shortfalls, and operational bottlenecks.
MBL Infrastructure’s resolution plan includes:
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A ₹91.1 million equity infusion to stabilize operations
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Debt restructuring and settlement mechanisms for secured creditors
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A 10-year recovery roadmap with phased upgrades and toll optimization
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Enhanced compliance with regulatory and safety standards
The plan was reviewed and approved by the Adjudicating Authority, signaling confidence in MBL’s ability to revive the asset and generate sustainable returns.
Strategic Significance for MBL Infrastructure
This move aligns with MBL Infrastructure’s broader strategy to consolidate its position in the road infrastructure segment. The company, which has a pan-India presence across highways, urban infrastructure, and metro projects, has been actively pursuing resolution of legacy assets to unlock value and improve its financial metrics.
According to a recent corporate presentation, MBL reported a Profit After Tax (PAT) of ₹169.49 crore in its latest quarter, a sharp turnaround from previous losses. The resolution of the MP Toll Road is expected to further strengthen its balance sheet and enhance investor confidence.
The company’s leadership has emphasized that the infusion is not just a financial transaction but a strategic investment in restoring public infrastructure and fulfilling contractual obligations.
What’s Next for the MP Toll Road?
With the resolution plan now in effect, MBL Infrastructure is expected to:
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Resume toll operations and deploy digital tolling systems
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Undertake road surface repairs, signage upgrades, and safety enhancements
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Collaborate with local authorities to ensure smooth traffic flow and compliance
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Monitor performance metrics and submit quarterly updates to stakeholders
The project is also expected to generate employment opportunities in the region and improve logistics efficiency for commercial transporters.
Market Reaction and Industry Outlook
Following the announcement, MBL Infrastructure’s stock saw modest gains, reflecting investor optimism around asset recovery and operational expansion. Analysts tracking the infrastructure sector believe that successful execution of the resolution plan could pave the way for similar turnarounds in other distressed BOT assets.
“This is a textbook example of how IBC can be leveraged to revive critical infrastructure. MBL’s proactive approach sets a precedent for other developers,” said a senior analyst at CRISIL.
With India’s infrastructure push gaining momentum under the National Infrastructure Pipeline (NIP), companies like MBL are well-positioned to capitalize on public-private partnerships and long-term concession models.
Sources: MBL Infrastructure – Official Website, Insolvency and Bankruptcy Board of India, ScanX News
