Mumbai, Dec 24 (PTI) Debt-laden IL&FS on Thursday said it has received approval from Justice (retd) D K Jain, who is overseeing the resolution process of the group, for sale of its Chinese road asset Chongqing Yuhe Expressway Co (CYEC).

The road asset will be sold to China Merchants & PingAn Infrastructure Phase 1 Equity Investment Fund (Tianjin) Co Ltd, a group company of PingAn Insurance (Group) of China (PingAn).

The Infrastructure Leasing and Financial Services (IL&FS) group, through its step down Singapore-based subsidiary ITNL International Pte Ltd (IIPL), holds 49 per cent stake in CYEC.

The balance 51 per cent stake in CYEC is held by Chongqing Expressway Group (CEG).

"PingAn has bid at an aggregate equity valuation of USD 281 million for 100 per cent stake," the group said in a statement.

This values IIPL's 49 per cent stake at around USD 138 million (Rs 1,020 crore).

PingAn will also take over the Rs 1,600 crore debt in CYEC (as of October 2018), it said.

The sale of this asset will help the group address nearly Rs 2,600 crore of its debt, the statement said.

IIPL will now be signing definitive agreements and filing an application with NCLT to complete the transaction.

CYEC holds and operates a concession for a toll-based expressway of approximately 58.72 kms in China till 2032.

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

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