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

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Infrastructure Urban

02 Jun 2026

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..