Business | Mon Mar 24, 2014 8:53pm IST

Jaiprakash to sell stake in cement unit for 6.9 bln rupees

NEW DELHI (Reuters) - Jaiprakash Associates Ltd (JAIA.NS) has agreed to sell its 74 percent stake in Bokaro Jaypee Cement to Dalmia Cement (Bharat) Ltd for 6.9 billion rupees, as the group seeks to cut its growing debts.

Indian power and infrastructures companies are suffering under the strain of large debts, a struggle to get projects approved and a slowdown in the Indian economy in recent months.

Jaiprakash and its subsidiaries have total debts of 620 billion rupees, up from between 550 billion and 560 billion in September, Executive Chairman Manoj Gaur told CNBC TV 18. The company plans to cut its debts by 250 billion rupees by the end of March 2015 through more asset sales, he added.

"The intention is to give less and less pain to the bankers and remain creditworthy in the eyes of the bankers," Gaur told the TV channel.

The Bokaro Jaypee Cement deal is subject to the approval of Steel Authority of India Ltd (SAIL.NS), its joint venture partner, Jaiprakash said on Monday after a board meeting.

Jaiprakash and its subsidiaries have already made a number of disposals in recent months.

Jaiprakash Power Ventures agreed to sell two power plants earlier in March to an Abu Dhabi-led consortium for $1.6 billion.

The company sold its cement plant in Gujarat state to UltraTech Cement last year.

Jaiprakash, founded by Jaiprakash Gaur, is known in India as the builder behind the country's only Formula One track.

(Reporting by Tommy Wilkes; Editing by David Holmes)

Top India News

Reuters Showcase

Auto Sector

Auto Sector

Ford aims to triple exports from India with $1 billion plant  Full Article 

Micromax Stake

Micromax Stake

SoftBank-led group in talks to buy stake in Micromax - sources  Full Article 

Airwaves Auction

Airwaves Auction

Top three mobile operators spend $13.6 bln in airwaves auction  Full Article 

Insurance Sector

Insurance Sector

Australia's IAG to up stake in joint venture with SBI  Full Article 

Accenture Results

Accenture Results

Accenture raises revenue growth forecast for second time  Full Article 

GAIL's Plans

GAIL's Plans

GAIL seeking 7 LNG cargoes from Oct. 2015-Dec. 2016 - tender document.  Full Article 

Eyeing Pininfarina

Eyeing Pininfarina

Pininfarina confirms Mahindra interest, says no deal yet  Full Article 

SH Kelkar IPO

SH Kelkar IPO

SH Kelkar files prospectus for IPO, seen at around $100 mln  Full Article 

Australia Beat India

Australia Beat India

Smith shines as Australia down India to reach final  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage 

X