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Vedanta has been identified as the highest bidder for debt-ridden Jaiprakash Associates, with an offer valued at INR 17,000 crore. On a net present value (NPV) basis, the bid stands at INR 12,505 crore, ahead of competing offers from Adani, Dalmia, Jindal Power, and PNC Infratech. The proposal includes an upfront payment of INR 4,000 crore after NCLT approval, while the remaining amount will be spread over the next five to six years. JAL's unpaid debt stands at over INR 55,000 crore, and the resolution process remains subject to creditor approval and tribunal clearance.
Vedanta has placed the winning bid for Jaiprakash Associates Limited (JAL), which has been undergoing insolvency proceedings under the Corporate Insolvency Resolution Process (CIRP). The mining and resources company offered a total package of around INR 17,000 crore, which amounts to INR 12,505 crore on a net present value basis. The bid was made through a structured auction process carried out by lenders to find a resolution for JAL, whose operations cover cement, power, real estate, roads, and hotels. Advertisement
The resolution professional had invited bids in late June, and a challenge process was subsequently held among five interested companies Vedanta, Adani Group, Dalmia Bharat, Jindal Power, and PNC Infratech. Vedanta emerged as the highest bidder (H1) in the process, beating Adani's competing offer. Sources confirmed that the Committee of Creditors (CoC), led by the National Asset Reconstruction Company (NARCL), identified Vedanta's plan as the top-ranked proposal.
The payment plan is structured in a staggered manner. Vedanta has committed to pay around INR 4,000 crore after the National Company Law Tribunal (NCLT) gives its approval, a stage that could take up to one year. The balance will be paid over the next five to six years. The staggered approach will be supported partly by Vedanta's own balance sheet and partly by JAL's internal accruals. According to sources, this ensures the plan does not rely exclusively on Vedanta's cash flows.
Although Vedanta has been recognised as the H1 bidder, the resolution plan is yet to be finalised. The Committee of Creditors will now vote on the plan, a process that may take between four and eight weeks. Once approved, implementation of the plan is likely to take another three to four months.
As per the company's stock exchange filing, JAL's total unpaid dues stood at INR 55,371.21 crore in mid-August. The group has a presence in multiple businesses, including power, cement, real estate, engineering, procurement and construction (EPC), hotels, and road projects.
For Vedanta, the acquisition provides access to JAL's assets, which align with its existing operations. The company already has a significant presence in the power sector, with projects such as Talwandi Sabo and Meenakshi Energy. Industry observers noted that JAL's limestone and coal mines could complement Vedanta's core businesses, while its real estate portfolio has potential for development through partnerships. Once Vedanta proceeds with its planned demerger of the power business, JAL's power assets are also expected to add weight to the portfolio.
The use of NPV in evaluating bids has been important in this case, as the payments are scheduled over several years. The NPV method accounts for the time value of money, comparing the present value of the proposed staggered payments to current investment cost. By this measure, Vedanta's offer of INR 12,505 crore was considered the most competitive among the bidders.
Source PTI
5th Jun, 2025
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