Jaiprakash Associates Promoters Propose ₹18,000 Crore Revival Plan to Restructure Debt and Reclaim Financial Stability – EQ
In Short : The promoters of Jaiprakash Associates have submitted a fresh ₹18,000 crore revival plan to lenders aimed at restructuring the company’s massive debt and stabilizing operations. The proposal includes asset sales, debt repayment, and strategic investments to revive the infrastructure conglomerate, which has been facing severe financial stress and insolvency proceedings in recent years.
In Detail : The promoters of Jaiprakash Associates have submitted a comprehensive ₹18,000 crore revival plan to lenders in a bid to restructure the company’s debt and restore financial stability. This fresh proposal comes at a critical time as the infrastructure major continues to grapple with heavy liabilities and multiple recovery proceedings.
According to sources, the revival plan aims to strike a balance between repaying lenders and reviving core operations. The promoters have proposed a mix of asset monetization, debt conversion, and equity infusion to ease the company’s financial burden and ensure a sustainable long-term turnaround.
Jaiprakash Associates, once a leading name in infrastructure, cement, and power projects, has been struggling under a mountain of debt for several years. The company’s accumulated liabilities have limited its ability to operate efficiently, forcing it to explore new ways of restructuring.
Under the proposed plan, several non-core and real estate assets may be sold to generate funds for debt repayment. In addition, the promoters are expected to seek strategic investors to infuse fresh capital into the company’s operational units, particularly in cement and construction.
Lenders, led by a consortium of major banks, are currently evaluating the proposal. Their approval will depend on the financial viability and transparency of the revival plan, as well as its alignment with regulatory and insolvency framework requirements.
The promoters have reportedly assured lenders that this restructuring effort would be the company’s final push to avoid liquidation. They emphasized their commitment to fulfilling repayment obligations and reviving the company as a going concern, protecting both jobs and shareholder value.
If accepted, the ₹18,000 crore plan could provide much-needed relief to creditors and signal a major step toward restoring confidence in India’s stressed infrastructure sector. The deal could also serve as a template for similar corporate recoveries in the future.
Analysts believe that the success of the plan will hinge on timely asset sales and the promoters’ ability to attract credible investors. Sustained cash flow generation and operational discipline will be crucial in ensuring the company’s long-term survival.
For Jaiprakash Associates, this revival proposal represents not just a financial restructuring but a chance to rebuild its reputation. If executed effectively, the plan could mark the beginning of a new phase for the company, turning years of distress into a renewed path toward stability and growth.
