Can restart stalled Jaypee projects in four months after nod, says source

Work on stalled Jaypee Infratech projects can start within the next four months if NBCC gets an official nod from the government to go ahead, sources at the state-run infrastructure firm said. NBCC also hopes to stick to its three-year completion deadline to start giving flats to close to 30,000 homebuyers.

“Our project plan is ready. We have everything in place to start work. If all goes according to plan, in the next three to four months we can start work at Jaypee sites,” said a senior official at NBCC.

However, it needs to be seen if Jaypee’s interim resolution professional Anuj Jain will allow NBCC to participate in the bidding process, as voting has begun on Suraksha Realty’s offer. The voting, which started on April 30, will conclude on May 3.

On Wednesday, the government cleared NBCC's revised offer to acquire Jaypee, days after a panel of lenders rejected the bid of the state-owned company for want of requisite approvals. In its meeting on April 26, the creditors had decided not to consider NBCC’s revised bid as the same was subject to approvals from various government authorities.

“The housing and urban affairs ministry has communicated its approval with concurrence/consultation with the department of expenditure, NITI Aayog and DIPAM (Department of Investment and Public Asset Management) for takeover of Jaypee by NBCC,” a filing by the company said. NBCC has also received approvals from the department of expenditure for its revised offer. 

After getting all clearances from the government, the NBCC is now hopeful of bagging the project.

NBCC has said the project, involving more than 3,000 acres of land, would be completed in the next three years. The government is also planning to have further discussions with the CoC so that the process of starting work can be started as soon as possible, it is learnt.

The company also plans to infuse Rs 500 crore into Jaypee. It believes this amount would come from selling the company’s assets, including 2,000 acres of land bank and 6,000 unsold flats. NBCC will also give 25 per cent of the contracted delay compensation. 

To protect financial creditors’ interest, NBCC has offered Rs 5,000 crore worth land as well as 100 per cent equity of Yamuna Expressway, the only cash-generating asset with Jaypee.