Jaypee offers 2,200-acre land to banks for loan settlement

With capital down to a creep, Jaiprakash Associates (JAL) and Jaypee Infra are offering land parcels of around 2,200 acres to banks in a bid to buy peace with lenders and settle most of its loans.

Banks have shown willingness to take over land parcels to avoid putting a non-performing asset (NPA) tag on the two Jaypee group companies. No project has been launched on these lands so far. An NPA tag will force banks to set aside funds for potential losses, known as provisioning, and impact their finances. For the company, it will make virtually impossible to raise fresh loans. The pressure from banks has already forced the Jaypee Group to shed several cash-generating assets, such as power and cement projects, but they have not been sufficient to settle its mammoth debt of Rs 37,000 crore at a time when both companies are incurring losses.

Jaypee has launched a township project – Wish Town – in Noida (Uttar Pradesh) on 1,200 acres of land. Though the company has started giving possession, all the projects are running behind schedule. JAL is now negotiating with lenders to sell its land parcel to settle loans of Rs 10,000 crore.

Extra info:
1. Non-performing asset (NPA)
2. Minister of Finance – Government ministry
3. Jaypee Group executive chairman and CEO – Manoj Gaur

So lets do:
1. Expand NPA?
2. Who is Finance minister of India?
3. Who is Jaypee Group executive chairman and CEO?
4. Jaypee offers_________ land to banks for loan settlement.

Source – The Economic Times


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