Jindal Steel prepays Rs 2,462 cr term loans, pares debt beyond commitment

Naveen Jindal-led Jindal Steel & Power (JSPL) today announced that it has made a prepayment of Rs 2,462 crore to its term lenders.

This is in continuation of its long-stated financial strategy of debt reduction and building a robust balance sheet with the optimum capital mix.

This reduction of debt amount is over and above the annual committed debt reduction in financial year 2020-21, said the company in its release.

“The significant debt reduction is part of our long-term financial strategy to create a strong balance sheet. In the coming quarters, we intend to further strengthen our balance sheet and become net debt-free shortly," the release quoted V R Sharma, managing director of Jindal Steel as saying.

The Delhi-based company's production stood at 7.51 million tonne during the financial year ended March 31, 2021.

JSPL has recently announced divestment of its thermal power business to reduce its debt further as well as to cut down on its carbon footprint by almost half.

JSPL has worked tirelessly with a singular focus on debt reduction of more than Rs 20,000 crore from a peak of around Rs 46,500 crore in Q3FY17 to Rs 25,600 crore as reported in Q3FY21.