IL&FS Transportation Networks Ltd said in a filing on Thursday that it missed $3 million in principal and interest payments due on March 18 because of "insufficient funds."

IL&FS Transportation Networks Ltd is a subsidiary of India's debt-laden Infrastructure Leasing and Financial Services Ltd (IL&FS), which the government took control of in October, citing the need to protect the country's financial system and markets from potential collapse.

IL&FS, which is looking to sell assets to pay off debts, said in December it had begun the sale of its domestic road assets within its IL&FS Transportation Networks subsidiary.