| DS Constructions picks up the stake for around Rs 46 crore.
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| DS Constructions has bought out Jaiprakash Industries (now called Jaiprakash Associates after its reverse merger into Jaypee Cement) in Jaypee-DSC Ventures Ltd, the company implementing the Delhi-Gurgaon access-controlled highway project, for about Rs 46 crore.
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| Jaiprakash Industries had a controlling 51 per cent stake in the venture and is now left with a negligible stake in the joint venture company, a source familiar with the deal told Business Standard.
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| “It is proposed not to change the name of the company. That is why some shares have been left with Jaiprakash Industries,” the source said.
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| DS Constructions is a part of the London-based $450 million DS Group that has business interests in infrastructure development, real estate, information technology, hotels & leisure management and retailing.
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| In India, the group’s thrust is in retailing and infrastructure. It runs the Ebony chain of retail stores in the country.
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| The joint venture had bagged the prestigious project on National Highway-8 connecting Delhi with Gurgaon last year after quoting the lowest price amongst a handful of Indian and overseas bidders.
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| The Rs 555-crore expressway, covering a distance of 27.7 km with six flyovers and six underpasses, is scheduled to be completed by November 2005.
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| This section is one of the busiest stretches in the country with over 150,000 passenger vehicles plying on it every day. The project is coming up on a build, operate and transfer contract under the direct tolling method.
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| The source said Jaiprakash Industries could have lost interest in the project as it was relatively small compared to the huge hydel power projects it has in hand.
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| “There was also a clash of work cultures between the two groups,” the source added. |
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