The Competition Commission of India (CCI) has granted in-principle approval to Naveen Jindal-led Jindal Power Ltd to acquire the debt-laden Jaiprakash Associates Ltd (JAL), subject to the company securing a winning bid in the ongoing insolvency process. The approval marks a crucial step in the corporate insolvency resolution of the diversified conglomerate, which has outstanding dues of around ₹57,185 crore.
Multiple Bidders in the Fray
Alongside Jindal Power, CCI has also cleared proposals from other interested bidders including PNC Infratech, Adani Group, and Dalmia Bharat. The regulator highlighted that the clearance is mandatory for submission of any resolution plan, in line with a recent Supreme Court ruling on the Insolvency and Bankruptcy Code (IBC).
Why the Approval Matters
The CCI’s nod ensures that any eventual takeover does not raise anti-competitive concerns. With creditors led by the National Asset Reconstruction Company Ltd (NARCL)—which acquired the bulk of JAL’s stressed loans from a consortium led by SBI—the resolution process carries high stakes for both bidders and lenders.
This approval enables all shortlisted companies to formally submit their resolution plans, which will be scrutinised and voted on by the Committee of Creditors (CoC).
The Road Ahead
While the CCI’s clearance is a significant milestone, it is not the final step. Jindal Power must still emerge as the successful bidder through the insolvency process. Once the CoC approves a resolution plan, the acquisition can move toward finalisation.
The outcome of this process will have far-reaching implications for India’s power and infrastructure sector. For Jindal Power, acquiring Jaiprakash Associates could unlock strategic expansion opportunities by adding established assets to its portfolio.
Summary
The Competition Commission of India has granted in-principle approval to Jindal Power and other contenders to bid for debt-ridden Jaiprakash Associates under insolvency. With claims worth over ₹57,000 crore at stake, the clearance paves the way for detailed resolution plans to be submitted. While a critical milestone, the acquisition’s success now depends on the outcome of insolvency proceedings and CoC approval, with potential to reshape India’s infrastructure landscape.
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