UltraTech Cement has reportedly done a U-turn on its agreement to purchase a cement plant from Jaiprakash Associates. The 3Mta plant formed part of UltraTech's acquisition of six integrated cement plants and five grinding units from the Jaypee Group, at a total cost of INR161,890m (US$2.4bn).
A number of environnmental clearances were pending related to the plant, according to The Economic Times. Both companies agreed that the final date for payment for the plant would be 30 June 2022, but UltraTech has now said that it is not willing to make the payment and is instead seeking a lower valuation for the unit as the clearances are not in place. The move has come as a blow to the banks which were hoping to recover some of their dues through the sale of the factory.
