The Competition Commission of India (CCI) has granted preliminary approval to Vedanta Ltd’s ₹17,000-crore proposal to acquire Jaiprakash Associates Ltd (JAL), marking a key step in the debt-laden company’s insolvency resolution process.

The approval paves the way for the Committee of Creditors (CoC) to vote on Vedanta’s bid, which outpaced a competing offer from the Adani Group and values JAL at a net present value of ₹12,505 crore.

Vedanta, a subsidiary of Vedanta Resources Ltd, focuses on natural resources, critical minerals, energy, and technology. Last month, Vedanta outbid Gautam Adani’s Group with a Rs 17,000 crore offer for JAL. This bid translates into a net present value of Rs 12,505 crore for Jaiprakash Associates. The CoC is still evaluating the received resolution plans, with voting expected soon.

In April, 25 companies expressed interest in acquiring JAL. By June, five bids were submitted with earnest money. These bids came from Adani Enterprises, Dalmia Bharat Cement, Vedanta Group, Jindal Power, and PNC Infratech. JAL entered insolvency proceedings following a National Company Law Tribunal order dated June 3, 2024, due to loan defaults.

JAL’s financial creditors have claimed Rs 57,185 crore in unpaid dues. The National Asset Reconstruction Company Ltd (NARCL) leads these claims after acquiring stressed loans from a consortium led by the State Bank of India. A challenge process was conducted by JAL’s lenders for its sale under the IBC.

JAL has diverse interests in real estate, cement, power, hotels, and roads. Its real estate projects include Jaypee Greens in Greater Noida and Jaypee International Sports City near Jewar International Airport. It also owns three commercial office spaces in Delhi-NCR and five hotels across Delhi-NCR, Mussoorie, and Agra.

The company operates four cement plants in Madhya Pradesh and Uttar Pradesh and holds leased limestone mines in Madhya Pradesh. However, these cement plants are currently non-operational. JAL also invests in subsidiaries like Jaiprakash Power Ventures Ltd and Yamuna Expressway Tolling Ltd.