NARCL Submits ₹550 Crore Bid for Jaypee Cement and Anil Ambani’s Toll Road Assets

The National Asset Reconstruction Company Limited (NARCL) has placed binding bids totalling ₹550 crore to acquire distressed assets from Jaypee Cement and Reliance Infrastructure, as per news reports. This move is part of its broader strategy to revive debt-laden projects through acquisition and resolution.

Jaypee Cement and Reliance Infra Toll Road Under Resolution

NARCL has made a ₹270 crore offer for Jaypee Cement Corp Ltd (JCCL), which has an outstanding debt of approximately ₹2,200 crore. Additionally, it bid ₹280 crore for the Salem-Ulundurpet toll road owned by Anil Ambani’s Reliance Infra, whose total debt stands at about ₹600 crore. Combined, these offers total ₹550 crore, covering only a fraction of the outstanding liabilities.

Asset Details and Business Context

Jaypee Cement, a subsidiary of Jaiprakash Associates, operates a 1.2 MTPA cement grinding unit and a 60 MW captive power plant in Shahabad, Karnataka. Although another 1.2 MTPA capacity remains non-operational, the asset still holds potential strategic value. Meanwhile, the Salem-Ulundurpet highway is a 136 km stretch and part of a key corridor in Tamil Nadu. Despite delays in commissioning, the road provides long-term strategic value within NHAI’s framework.

Read More: CCI Approves Acquisition of Jaiprakash Associates by Dalmia Cement!

Deal Structure and Government Support

NARCL’s bid adheres to the 15:85 structure, where 15% is paid upfront in cash and the remaining 85% is issued to banks in the form of government-guaranteed Security Receipts. This structure ensures limited risk exposure for banks while enabling potential long-term recovery through asset turnaround or sale.

Conclusion

NARCL’s ₹550 crore offer for Jaypee Cement and Reliance Infra’s toll road represents a strategic push towards stabilising and restructuring major distressed infrastructure and industrial assets. With government support and a clear acquisition framework, these transactions could pave the way for further resolutions in the sector.

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