Jaypee plans to cut debt by Rs 15,000 cr this fiscal

Company has Rs 55,000 crore debt as on August-end

Jaypee Group plans to cut debt by Rs 15,000 crore in the current fiscal by raising funds through sale of assets and roping in strategic partners.

"The first phase of debt reduction has happened with the selling of Gujarat cement unit of Jaypee Cement Corporation Ltd (JCCL) to Ultratech for Rs 3,800 crore. We plan to bring down debt by Rs 15,000 crore in 2013-14," Jaypee Group's Executive Chairman Manoj Gaur said.

Gaur said Jaypee Group, which has interest in real estate, cement and power among others, has Rs 55,000 crore debt, as on August-end.

Some other projects would be divested and strategic partners might be brought in to achieve the target of debt repayment, he added.

He, however, refused to identify the projects which could be put on the block.

"All options are there in all businesses, including cement, hydro and thermal power," Gaur said while maintaining that debt is not a "curse" for the Group and servicing the debt is not a "concern".

Jaypee Group had demerged JCCL from flagship Jaiprakash Associates Ltd (JAL) to monetise the assets which had a total of 9.8 million tonnes per annum (mtpa) capacity. Besides, the Gujarat unit of 4.8 mtpa, JCCL has cement plants in Karnataka and Andhra Pradesh.

Following the transaction, Jaypee Group's cement capacity would reduce to 33 million tones, but still it would continue to be third largest cement manufacturer in the country.

The Group's power portfolio consists of both hydro and thermal projects. While it has 1,700 MW hydro power capacity, its thermal power capacity stands at 500 MW.