New Delhi, March 2026 – UltraTech Cement has resolved a ₹1,000 crore debt dispute with Jaiprakash Associates (JAL), clearing a major obstacle for the Adani Group’s acquisition of JAL. By settling outstanding preference shares tied to the Dalla Super cement asset, UltraTech has removed a key financial encumbrance. This move reduces risk for Adani’s significant acquisition and smooths the integration of JAL’s operations, which have been financially strained. The arbitration between the two companies centred on the failed redemption of redeemable preference shares (RPS) of ₹1,000 crore issued by UltraTech in favour of Jaiprakash Associates in June 2017. The shares were placed in an escrow and subject to certain conditions related to the Dalla Super deal. Under the settlement, UltraTech Cement redeems ₹1,000 crore in preference shares. The agreement, reached outside of court, will channel these funds through an escrow account specifically for JAL’s lenders, who are seeking recovery from the company’s over ₹50,000 crore debt defaults.
The Dalla Super Plant and Its Strategic Significance
The Dalla Super cement plant in Uttar Pradesh sits at the centre of one of India’s most complex multi-party asset disputes. The Dalla asset has a 2.3 million tonne clinker capacity and a limestone mine capacity of 100 million tonnes, and was part of a larger cement deal that UltraTech agreed to buy from Jaiprakash Associates in 2016. The plant’s strategic value derives from UP’s limestone scarcity: the Dalla Super complex holds the only significant limestone reserves in Uttar Pradesh, making control of this asset critical for any cement manufacturer with north Indian ambitions.
The Indian cement sector is showing resilience and is projected to grow steadily in 2026, driven by infrastructure projects and housing demand. Cement sales volumes increased 8% year-over-year in the first seven months of fiscal year 2026, with growth expected at 6–7% for the full year. The resolution of this long-standing arbitration removes one of the most significant legal clouds over JAL’s asset portfolio enabling a cleaner transition to Adani Group management once the NCLT-approved resolution plan is implemented.
Context: The Adani-JAL Acquisition
The NCLT Allahabad bench approved Adani Enterprises’ ₹14,535 crore resolution plan for JAL on March 17, 2026 – backed by 89% of creditor votes. The plan is now facing a legal challenge at NCLAT from Vedanta Group, which claims its competing bid was not fairly evaluated. However, the UltraTech settlement demonstrates that key third-party encumbrances on JAL’s assets are being systematically resolved, a positive signal for implementation once legal proceedings conclude.
