Essel Infra Faces Insolvency on JK Bank's Application
ECONOMY & POLICY

Essel Infra Faces Insolvency on JK Bank's Application

Essel Infraprojects Limited (EIL), the infrastructure arm of Essel Group, is facing insolvency proceedings initiated by Jammu and Kashmir Bank. The bank filed a petition under the Insolvency and Bankruptcy Code (IBC) to recover unpaid dues from EIL. This development adds to the financial struggles of Essel Group, which has been grappling with significant debt across its businesses.

The insolvency application comes after a prolonged period of defaults by Essel Infra in repaying loans taken for various infrastructure projects. The company has been under financial pressure for several years, primarily due to delays in project execution, non-receipt of expected revenue, and a broader economic slowdown affecting the infrastructure sector. These factors have led to liquidity issues, making it difficult for the company to meet its financial obligations.

The National Company Law Tribunal (NCLT) is expected to hear the matter soon, which could lead to the initiation of a corporate insolvency resolution process (CIRP) if the tribunal finds merit in the bank's petition. If the CIRP process begins, Essel Infra will be required to present a resolution plan to settle its outstanding debts or face liquidation.

The insolvency case is a significant setback for Essel Infra, which was once a key player in India's infrastructure sector, involved in various projects across sectors like roads, urban infrastructure, and renewable energy. The financial woes of the company reflect broader challenges in the Indian infrastructure space, where several firms are dealing with heavy debt burdens.

Essel Infraprojects Limited (EIL), the infrastructure arm of Essel Group, is facing insolvency proceedings initiated by Jammu and Kashmir Bank. The bank filed a petition under the Insolvency and Bankruptcy Code (IBC) to recover unpaid dues from EIL. This development adds to the financial struggles of Essel Group, which has been grappling with significant debt across its businesses. The insolvency application comes after a prolonged period of defaults by Essel Infra in repaying loans taken for various infrastructure projects. The company has been under financial pressure for several years, primarily due to delays in project execution, non-receipt of expected revenue, and a broader economic slowdown affecting the infrastructure sector. These factors have led to liquidity issues, making it difficult for the company to meet its financial obligations. The National Company Law Tribunal (NCLT) is expected to hear the matter soon, which could lead to the initiation of a corporate insolvency resolution process (CIRP) if the tribunal finds merit in the bank's petition. If the CIRP process begins, Essel Infra will be required to present a resolution plan to settle its outstanding debts or face liquidation. The insolvency case is a significant setback for Essel Infra, which was once a key player in India's infrastructure sector, involved in various projects across sectors like roads, urban infrastructure, and renewable energy. The financial woes of the company reflect broader challenges in the Indian infrastructure space, where several firms are dealing with heavy debt burdens.

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000