Jaiprakash Power sizzles as company agrees Rs 511 crore NARCL settlement

Jaiprakash Power Ventures surged 9.97% to Rs 16.88 after the company announced settlement terms with National Asset Reconstruction Company (NARCL) in connection with insolvency proceedings initiated earlier this year.

Jaiprakash Power Ventures said NARCL and the company have agreed to settle the matter and claim for Rs 511 crore as full and final payment. The settlement is subject to fulfilment of certain other conditions and execution of definitive agreement(s).

The company said the insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) will be withdrawn once all the conditions of the settlement terms are fulfilled. The company will keep the stock exchanges informed about further developments.

In February 2026, the company had informed that NARCL had filed an application before the NCLT, Allahabad Bench, for initiation of Corporate Insolvency Resolution Process (CIRP) against the company under Section 7 of the Insolvency and Bankruptcy Code, 2016.

NARCL had alleged a default of Rs 511.73 crore, plus interest and other charges, relating to a corporate guarantee provided by Jaiprakash Power Ventures for Jaiprakash Associates. The company had also said that a similar matter was under dispute before the Debt Recovery Tribunal-III, Delhi. At the time, the NCLT application had not yet come up for hearing.

Jaiprakash Power Ventures develops and operates power projects in India. Following implementation of Jaiprakash Associates' approved resolution plan, Adani Power acquired JAL's 24% stake in Jaiprakash Power Ventures effective 21 May 2026.

The company operates the 400 MW Vishnuprayag hydroelectric project and two thermal power projects in Madhya Pradesh - the 500 MW Bina Thermal Power Plant and the 1,320 MW Nigrie Super Thermal Power Project.

On a consolidated basis, Jaiprakash Power Ventures' net profit surged 68.57% to Rs 468.84 crore while net sales rose 12.16% to Rs 1775.70 crore in Q1 June 2026 over Q1 June 2025.

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