Hudco approves Rs 2,000-crore credit line to NBCC for JIL bid

By: |
May 28, 2021 2:27 AM

NBCC submitted its revised bid to Hudco on May 22, with the approval of the ministry of housing and urban affairs (MoHUA). In a letter to Hudco, NBCC requested for a letter of comfort (LoC) for financing Rs 2,000 crore, as per the requirement of its revised resolution plan, a source said.

We aim to enable customers to benefit from a fruitful investment and enjoy greater flexibility concerning the layout, design, and function of the space.We aim to enable customers to benefit from a fruitful investment and enjoy greater flexibility concerning the layout, design, and function of the space.

State-run Housing and Urban Development Corporation (Hudco) has given in-principal approval for a Rs 2,000-crore credit line facility to NBCC as part of the public sector undertaking’s (PSU) revised bid for acquiring the bankrupt Jaypee Infratech (JIL).

NBCC submitted its revised bid to Hudco on May 22, with the approval of the ministry of housing and urban affairs (MoHUA). In a letter to Hudco, NBCC requested for a letter of comfort (LoC) for financing Rs 2,000 crore, as per the requirement of its revised resolution plan, a source said.

Accepting NBCC’s request in principle, on Monday (May 24), Hudco informed the PSU that the final approval would depend on submitting a detailed appraisal of its project (bid) and getting it approved by its board of directors, he added.

“However, these are just formalities. Hudco has already given in-principal approval for the loan. NBCC’s proposal is also backed by the MoHUA. They should not have an issue in getting it once their revised bid is approved by JIL’s CoC,” a senior government official said.

NBCC on Wednesday in a letter to Anuj Jain, JIL’s interim resolution professional (IRP), said that if the lender’s panel decides to call for revised bids later this week, the firm will submit the same, after taking into account all observations made by Jain.

“You have also asked for a shortfall undertaking to be provided by NBCC. Though we consider our plan as legally compliant as per our understanding we appreciate that you have to forward legally compliant plans to CoC as per your understanding. Since NBCC is fully committed to the resolution plan, which will provide houses to about 20,000 home buyers, who are waiting for long, we are ready to consider your point of view and put up to our Board for necessary amendments,” it assured the IRP.

NBCC and the consortium led by Suraksha Realty are the two resolution applicants who have been battling it out for more than a year to acquire the cash started real estate developer, which went into corporate insolvency resolution process (CIRP) in August 2017.

On Monday, JIL’s committee of creditors (CoC) decided to put on a vote on May 27-28 whether Suraksha Group and NBCC should be given a week to submit their revised bids Thursday is the first day of voting in this regard. And it will end on Friday.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1WhatsApp’s new policy: A privacy bogey?
2RPower board approves preferential issue of shares, warrants to RInfra promoters
3Insolvency Case: NCLT sets up monitoring panel for DHFL until Piramal Group’s resolution plan is implemented