NARCL's Rs.10,000 Crore Proposal for Jaiprakash Associates' Debt

13 Mar 2024 CW Team

If a majority of lenders agree to sell their debt, NARCL will acquire Jaiprakash Associates Ltd (JAL)'s various businesses spanning cement, hospitality, real estate, fertiliser, and construction sectors. JAL, a flagship company of the Jaypee Group led by Manoj Gaur, is at the center of this significant transaction.

In the fiscal year 2023, NARCL successfully acquired 62% of Jaypee Infratech's debt, offering lenders a notable 39% recovery through an uncontested Swiss challenge auction.

Among the major lenders to JAL, State Bank of India holds the largest debt share at 26%, followed by ICICI Bank at 19%, and IDBI Bank at 11%. As of March 2023, the company's total principal outstanding debt stood at ?17,700 crore. Notably, NARCL's offer of ?10,000 crore excludes the debt held by Ares SSG Capital-backed Asset Care & Reconstruction Enterprises (ACRE).

The government-backed ARC has been actively pursuing distressed assets in recent months, with this proposed deal marking its most substantial acquisition to date. Over the past three months, NARCL has either acquired or is in the process of acquiring at least a dozen such loan accounts.

Jaiprakash Associates is one of the 28 accounts directed by the Reserve Bank of India to be resolved under the Insolvency and Bankruptcy Code in 2017. While IDBI Bank initiated the resolution process at the National Company Law Tribunal (NCLT), SBI filed a separate petition in September 2022. However, the NCLT has yet to admit these pleas, as negotiations for an out-of-court settlement between the promoters and lenders continue.

This proposed acquisition by NARCL not only signifies a significant step in resolving distressed assets but also underscores the ongoing efforts to streamline the Indian banking sector.

The National Asset Reconstruction Company of India (NARCL) has put forth a groundbreaking proposal to acquire the debt of Jaiprakash Associates from banks for a staggering ?10,000 crore. This marks the largest offer to date by the government-backed asset reconstruction company (ARC), which commenced operations just over two years ago. If a majority of lenders agree to sell their debt, NARCL will acquire Jaiprakash Associates Ltd (JAL)'s various businesses spanning cement, hospitality, real estate, fertiliser, and construction sectors. JAL, a flagship company of the Jaypee Group led by Manoj Gaur, is at the center of this significant transaction. In the fiscal year 2023, NARCL successfully acquired 62% of Jaypee Infratech's debt, offering lenders a notable 39% recovery through an uncontested Swiss challenge auction. Among the major lenders to JAL, State Bank of India holds the largest debt share at 26%, followed by ICICI Bank at 19%, and IDBI Bank at 11%. As of March 2023, the company's total principal outstanding debt stood at ?17,700 crore. Notably, NARCL's offer of ?10,000 crore excludes the debt held by Ares SSG Capital-backed Asset Care & Reconstruction Enterprises (ACRE). The government-backed ARC has been actively pursuing distressed assets in recent months, with this proposed deal marking its most substantial acquisition to date. Over the past three months, NARCL has either acquired or is in the process of acquiring at least a dozen such loan accounts. Jaiprakash Associates is one of the 28 accounts directed by the Reserve Bank of India to be resolved under the Insolvency and Bankruptcy Code in 2017. While IDBI Bank initiated the resolution process at the National Company Law Tribunal (NCLT), SBI filed a separate petition in September 2022. However, the NCLT has yet to admit these pleas, as negotiations for an out-of-court settlement between the promoters and lenders continue. This proposed acquisition by NARCL not only signifies a significant step in resolving distressed assets but also underscores the ongoing efforts to streamline the Indian banking sector.

Infrastructure Urban

31 Jul 2026

SCLR Extension Nears Completion Linking BKC With Signal-Free Route

The Santacruz-Chembur Link Road (SCLR) extension towards Bandra-Kurla Complex (BKC) via the Mumbai University campus has entered its final stage, bringing motorists closer to a direct, signal-free connection between the Western Express Highway and the city’s commercial district. The elevated connector is being built as an arm from the SCLR alignment and will link the western suburbs with BKC without surface signals. The link is designed to reduce journey times for commuters travelling from the western suburbs to BKC and to improve access to eastern Mumbai. By carrying through traffic above s..

Infrastructure Transport

31 Jul 2026

Raiganj MP Seeks Bengal Only Highway Link To Siliguri

Raiganj Member of Parliament Kartik Chandra Paul met Union Minister for Road Transport and Highways Nitin Gadkari in New Delhi to press for a new stretch of national highway in North Dinajpur district. He urged approval for a Bengal-to-Bengal link that would connect National Highways 12 and 27 to allow vehicles bound for Siliguri to avoid the current route through Kishanganj in neighbouring Bihar. He also submitted a proposed alignment of the new road to the ministry for consideration. At present vehicles from Raiganj travel along NH-12 and join NH-27 at Purnia More in Dalkhola, a route that p..

Infrastructure Transport

31 Jul 2026

Airport Kilambakkam Metro Line To Be Extended To Chengalpattu

Chennai Metro Rail (CMRL) has invited tenders for two detailed project reports that would extend its rail network to Chengalpattu in the south and extend Corridor-5 to Wimco Nagar in the north as part of a second wave of expansion beyond the operator's corridors under construction. The move signals an acceleration of planning for suburban links and interchange nodes. The larger of the two studies covers a roughly 27km extension from the planned Kilambakkam metro station to Chengalpattu under Corridor-1, Phase I. CMRL floated the tender at an estimated cost of Rs 21.6 mn. The proposed line woul..