Jindal Power Wins Green Light for Jaiprakash Associates Acquisition

The Competition Commission of India (CCI) has given in-principle approval for Naveen Jindal-led Jindal Power to acquire the debt-laden Jaiprakash Associates, provided the company wins the ongoing insolvency bid. This approval is a crucial step in the corporate insolvency resolution process of the conglomerate, which currently faces massive debt obligations.

Alongside Jindal Power, the CCI has also cleared proposals from other contenders including PNC Infratech, Adani Group, and Dalmia Bharat. The regulator emphasised that this clearance is essential for submission of any resolution plan, following a recent Supreme Court ruling interpreting provisions of the Insolvency and Bankruptcy Code (IBC).

Significance of the Approval

The in-principle approval from CCI is a key requirement for bidders to participate in the resolution process. It ensures that any potential acquisition does not create anti-competitive practices in the market. With Jaiprakash Associates owing creditors approximately ₹57,185 crore, the stakes are high for all participants in the insolvency proceedings.

The National Asset Reconstruction Company Ltd (NARCL) leads the claims on JAL’s stressed loans, having acquired them from a consortium headed by the State Bank of India. The approval allows Jindal Power and other bidders to proceed with submitting detailed resolution plans, which will then be evaluated and voted on by the Committee of Creditors (CoC).

Read more: SEBI Bars Man Industries and Executives for Two Years, Imposes ₹25 Lakh Fine Each

The Road Ahead

While the CCI’s clearance is a major milestone, the acquisition process is far from complete. Jindal Power must now secure a successful bid through the ongoing insolvency proceedings. Once the resolution plan is approved by the CoC, the acquisition can move towards finalisation.

The deal is expected to have significant implications for India’s power and infrastructure sector. Jaiprakash Associates, with its extensive operations, offers strategic opportunities for expansion to the successful bidder. For Jindal Power, winning the bid could provide access to established assets, enabling it to strengthen its position in the market.

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