Jaypee Group to sell some power, cement assets to cut debt

Diversified business conglomerate Jaypee Group is likely to sell some of its power and cement assets in order to pare debt.

According to a report by brokerage Credit Suisse, the gross debt of Jaypee Group as on March 31, 2013, stood around Rs 64,000 crore.

Sources say the company is likely to sell equity in two of its hydro power projects and is in discussion with some players. A Jaypee Group spokesperson, however, declined to comment.

According to reports, Abu Dhabi Water & Electric Authority (ADWEA) is likely to acquire two hydro-power projects in Himachal Pradesh from the company.

Jaypee may sell equity in its 300 MW Baspa II and the 1,000 MW Karcham Wangtoo project in Himachal Pradesh.

It is also operating a 400 MW hydro power project at Vishnuprayag in Uttarakhand.

Jaypee Group is working on increasing its cement capacity to 36 million tonnes per annum (mtpa) by the end of the current financial year and is evaluating various locations to take it to 50 mtpa capacity over the next five years.

Sources said Aditya Birla Group's flagship Ultratech Cement is at an advanced stage of negotiation with Jaypee Cement Corporation to acquire its 31 per cent stake in the 5 mtpa Gujarat facility for about Rs 4,000 crore.