KOLKATA: Steel manufacturing company Jai Balaji Industries Ltd. has entered into a loan agreement of Rs 559 crore with Tata Capital Financial Services to repay the outstanding loan outstanding with two asset reconstruction companies.

Jai Balaji had outstanding NPAs (non-performing assets) of around Rs 3,000 crore in 2018-19. The banks later sold this loan to two ARCs.

The company's Chairman and Managing Director Aditya Jajodia told PTI that with this agreement with Tata Capital, ARC's NPA dues have been settled.

He said, “Our current loan from Tata Capital is only Rs 559 crore. Given the positive turnaround and strong cash flow, we aim to be debt free within the next 12 months.

According to the company, with this new debt structure Jai Balaji Industries is now in a position to move ahead with its expansion plans for ductile iron pipes and special grade ferro alloys.