Jaypee Infra defaults on its loans

Company says it made losses of Rs 243 cr on revenues of Rs 2,799 cr mainly due to slowdown in economy

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Jaypee Infratech announced it had defaulted, for the first time, on interest payments to Indian banks of Rs 193 crore and of Rs 300 crore to Life Insurance Corporation of India in repayment of principal.

In its annual result filings for 2015-16, it stated the losses were Rs 243 crore on revenues of Rs 2,799 crore, mainly due to economic slowdown. "The demand for real estate in the NCR (national capital region) was negatively impacted.  The company sought to refinance its existing loans worth Rs 6,550 crore under the Reserve bank of India scheme and all lenders, expect LIC, have approved," it said.

The company operates the Yamuna Expressway between Delhi and Agra and has rights to develop land along the route.

The group’s flagship, Jaiprakash Associates, will announce its results on Saturday. It had sold its power plants to the JSW group  for Rs 9,700 crore and its cement business to UltraTech Cement for Rs 16,500 crore, bringing debt down to Rs 60,000 crore.

More sale of assets to cut debt is planned by the group. "We have time and again shown our will to take pro-active steps to tide over these turbulent times caused by the economic slowdown," Jaypee Chairman Manoj Gaur had told this newspaper, soon after it announced the sale of its cement units on March 31.