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JSPL sells oxygen plant assets at Raigarh, Angul units for Rs 1,121 crore

The move would make JSPL an asset-light company and enhance its cost efficiencies

Megha Manchanda  |  New Delhi 

Capacity utilisation falls for RINL, JSW Steel and JSPL

In a move aimed at deleveraging its balance sheet, on Monday said it had completed the sale of at its Raigarh and Angul units for Rs 1,121 crore with Equipment Finance Limited.

“Under the transaction, has divested its at its integrated steel plants at Raigarh (Chhattisgarh) and Angul (Odisha), and received a total consideration (inclusive of taxes) of Rs 1,121 crore. and Equipment Finance Ltd have also entered into a Lease Back agreement of the for continued operations by for manufacturing of steel at the respective plants,” the company said in a statement.

The move would make an Asset-Light company and enhance its cost efficiencies.

will continue to manage these cutting-edge oxygen plant capacities for its 9.6 MTPA domestic steel plants under a Lease Back agreement, thereby retaining full operational control,” Naushad A Ansari, CEO – Steel Business, said in the statement.

The company has commissioned the 4 million tonnes per annum (MTPA) blast furnace in the last quarter, which marks the completion of its 6 MTPA integrated steel plant at Angul (Odisha). It is also operating 3.6 MTPA integrated steel plant at Raigarh (Chhattisgarh).

Meanwhile, the company's long-serving managing director and group CEO Ravi Uppal announced his exit from JSPL, last month.

The debt-laden firm had defaulted in December on interest payment on non-convertible debentures.

Jindal Steel & Power Ltd is currently trading at Rs 158.1, up by 3.74% from its previous closing of Rs 152.4 on the BSE.

First Published: Tue, October 10 2017. 00:53 IST