The Competition Commission of India (CCI) has approved Jindal Power Limited’s acquisition of debt-laden Jaiprakash Associates Limited, the Press Information Bureau (PIB) reported on Tuesday, September 30. The transaction, cleared under the corporate insolvency resolution process (CIRP) of the Insolvency and Bankruptcy Code, 2016, is seen as a key step in resolving one of India’s major stressed assets.
Clearance under IBC
According to the regulator, the proposed deal involves Jindal Power taking control of Jaiprakash Associates through the ongoing insolvency proceedings. A detailed order will be issued later, setting out the full terms of the approval. The clearance reflects the IBC’s role in enabling time-bound resolutions while safeguarding competition in the market.
Acquirer’s profile
Jindal Power Limited, incorporated under the Companies Act, 1956, is part of the Jindal Group and operates primarily in the power sector. The wider group also has businesses in steel, mining and energy, with operations extending beyond India. Industry watchers note that the acquisition could allow the group to widen its reach into real estate and construction-linked ventures alongside its core power portfolio.
Jaiprakash Associates’ position
Jaiprakash Associates Limited, once a flagship in infrastructure, has operations spanning real estate, cement, hospitality and engineering, procurement and construction (EPC). The company entered insolvency after failing to meet its debt obligations. Analysts say its cement and EPC divisions are among the most valuable parts of the business and could be stabilised under the ownership of a larger group. The CCI’s approval is a significant milestone in the resolution process.
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