Displaying items by tag: Jaiprakash Associates

India: ICICI Bank has asked the National Company Law Appellate Tribunal (NCLAT) to speed up an insolvency petition against Jaiprakash Associates. It said that there had been no progress on the plea since September 2019, according to the Hindu newspaper. The private bank alleges that the subsidiary of Jaypee Group has delayed the petition through adjournments of the process. It owes the bank around US$185m.

Jaiprakash Associates sold six integrated cement plants and five grinding plants to UltraTech Cement for US$2.5bn in 2017. It was reportedly in talks with LafargeHolcim’s subsidiary ACC in mid-2018 to sell its remaining cement business.

India: The Industries Department of Himachal Pradesh is preparing to allow construction work to start at a new cement plant at Sikridhar in the Chamba district in September 2018. The project is a long running scheme from the local government that was first mooted in 2002, according to the Times of India newspaper. The project has been linked to various companies previously including Jaiprakash Associates.

India: Jaiprakash Associates has secured an order worth US$415m from Chenab Valley Power Projects. The deal is to build a diversion tunnel and concrete face dam for a hydroelectric project in Jammu and Kashmir, according to the Economic Times newspaper. The company is currently attempting to sell its remaining cement production assets to ACC.

India: LafargeHolcim’s subsidiary ACC is in talks to buy Jaiprakash Associates’ remaining cement business. It plans to buy the production capacity of 5.5Mt/yr for US$763m by mid-2018, according to sources quoted by the Economic Times newspaper. Jaiprakash Associates is selling the last parts of its former cement assets to reduce its debts.

The proposed deal includes plants in central India with clinker production capacity of 4.4Mt/yr and a cement grinding capacity of about 3.3Mt/yr, the company's 74% stake in Bhilai Jaypee Cement, a joint venture with Steel Authority of India, and the Nigrie grinding plant.

Jaiprakash Associates previously agreed to sell three cement plants to Orient Cement in mid-2017 but this deal was cancelled after a delay of one year. Prior to this the company sold six integrated cement plants and five grinding plants to UltraTech Cement for US$2.5bn in 2017. Following the sale of its remaining cement assets, the company will primarily an engineering, procurement and construction contractor in road and hydroelectric power.

India: Orient Cement has cancelled a deal to buy three cement plants from Jaiprakash Associates. The companies signed an agreement in May 2017 to buy a 74% stake in Bhilai Jaypee Cement for US$225m and the acquisition of the Nigrie cement grinding plant in Singrauli, Madhya Pradesh from Jaiprakash Power Ventures for US$77m. Orient Cement said that the terms of the agreement allowed either party to terminate it if it did not complete within 12 months.

Bhilai Jaypee Cement, a joint venture between Jaiprakash Associates and the Steel Authority of India Limited (SAIL), has a 2.2Mt/yr integrated Portland slag cement plant in Satna Madhya, Madhya Pradesh and a grinding plant in Bhilai, Chhattisgarh.

India: Jaiprakash Associates’ sales have nearly halved following the sale of much of its cement business to UltraTech Cement in mid-2017. Its sales dropped to US$1.14bn in the year to the end of March 2018 from US$2.19bn in the same period in 2017. The company said that its annual results were not comparable due to the sale of six integrated cement plants and five grinding plants.

India: The state government of Uttar Pradesh has identified land on which Jaiprakash Associates will have to plant a plantation as a penalty for conducting mining in a forest. The decision follows a National Green Tribunal order in 2016, according to the Times of India newspaper. UltraTech Cement purchased the Dalla plant from Jaiprakash Associates in 2017 but it has been unable to use the site fully due to legal issues. It will be able to use the site fully once the conditions of the government proposal have been completed. Other conditions of the government deal will force Jaiprakash Associates to pay four times the actual cost of land for its acquisition and to maintain the plantation for 10 years.

India: The Ministry of Coal has cancelled Jaypee Cement’s coal block at Mandla in Madhya Pradesh citing breach of agreement. In a letter the ministry said that the cement producer was ‘not serious about the development of the coal mine,’ according to the Business Standard newspaper. The ministry has accused Jaypee Cement of switching the plant using coal from the mine without permission and of exceeding the agreed output.

The Mandla coal mine was allocated to Jaypee Cement in March 2015 after a bidding process. At first it supplied Jaypee’s Balaji cement plant in Andhra Pradesh. However, production from the mine switched to the Shahabad cement plant in June 2017 following the acquisition of the Balaji plant by UltraTech Cement.

India: IDBI Bank has decided to withdraw the nomination of S K Mohapatra from the board of debt-ridden Jaiprakash Associates. In a BSE filing, crisis-hit Jaiprakash Associates informed that Subrat Kumar Mohapatra, the chief general manager of IDBI Bank, has resigned from the board. IDBI Bank has decided to withdraw the nomination of Subrat Kumar Mohapatra from the board of directors of the company with immediate effect, the filing said. Mohapatra thus ceased to be director of the company with effect from 13 February 2018.

Jaiprakash Associates, the flagship firm of the Jaypee Group, has interests in cement, construction, hospitality, power and real estate businesses. The company has divested a number of its assets, including cement plants, to reduce debt.

India: Jaiprakash Associates has narrowed its loss to US$23m in the third quarter of its financial year from US$171m in the same period in 2016. Despite this its income fell by 30% year-on-year to US$178m from US$258m, according to the Press Trust of India. The company has sold its assets, including a large number cement plants to UltraTech Cement, to reduce debt.