Jaypee to sell few power, cement assets to cut debt: Report

Diversified business conglomerate Jaypee Group is likely to sell some of its power and cement assets in order to pare debt, according to sources. The company is likely to sell equity in two of its hydro power projects and is in discussion with some players, they said.

On asked about the development, a Jaypee Group spokesperson declined to comment. As per a report by brokerage Credit Suisse, gross debt of Jaypee Group stood around Rs 64,000 crore as on March 31, 2013.

According to reports, Abu Dhabi Water & Electric Authority (ADWEA) is likely to acquire two hydro-power projects in Himachal Pradesh from the company. The company 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. The company may soon sell 31 per cent of its equity in the Gujarat cement plant, the sources said.

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Aditya Birla Group's flagship Ultratech Cement is at an advanced stage of negotiation with Jaypee Cement Corporation to acquire a 31 per cent stake in its 5 mtpa (million tonne per annum) Gujarat facility for about Rs. 4,000 crore, they added.

Jaypee Group is working on increasing its cement capacity to 36 mtpa by the end of the current fiscal year and is evaluating various locations to take it to 50 mtpa capacity over the next five years.