Jaypee Group puts holding in Yamuna Expressway on sale

The Jaypee Group is trying to sell off its holding in the Yamuna Expressway project. The expressway, which became operational in August 2012, is a six-lane, 165 km long stretch which connects Noida to Agra. It runs along the Yamuna River and was built in partnership with the Government of Uttar Pradesh at a project cost of over Rs. 12,000 crore.

The group is reported to be in talks with IDFC Alternatives and I Squared Capital for the sale of its entire holding since it failed to sell a partial stake. IDFC was not interested in acquiring a partial stake. The expressway's enterprise value is reported to be estimated at Rs. 3,300 crore by IDFC Alternatives.

The deal will include construction, operation and maintenance of the expressway and rights for the development of more than 6,175 acres of land along the expressway. Five townships are being developed on this land by the Jaypee Group.

The Jaypee Group, which includes Jaiprakash Power Ventures, Jaiprakash Associates and Jaypee Infratech, has a debt of over Rs. 61,000 crore (as on September 30, 2015) and is under pressure from its lenders after it defaulted in making payments. As a result it is looking at the option of disposing its assets to repay the debt.

For the year ended March 31, 2015, the expressway had a reported average daily traffic of 16,490 passenger car units and aggregate toll collection revenue of Rs. 168.65 crore. The company was managing to generate toll income revenue of Rs. 200 crore per year as against the earlier expectation of Rs. 1,000 crore.

Source: Live Mint