JSPL again defaults on interest payment

Jindal Steel and Power Ltd says that they fails to pay Rs 15.43 crore interest on non convertible debentures

Jindal Steel and Power Ltd on Thursday said it has failed to pay Rs 15.43 crore interest on non convertible debentures (NCDs), which was due on October 31.

"The company has not made payment of Rs 15.43 crore towards the interests due on NCDs, the due date for payment of which was October 31, 2016," JSPL said in a regulatory filing.

Last month, the firm had said it has defaulted on payment of interest on NCDs, due on September 30, 2016 on account of cash flow mismatches.

In the last few months, the Naveen Jindal led company has divested some of its assets to pare debt. JSPL has a net debt of around Rs 46,000 crore.

In October, the company said it will sell its 24 MW wind power plant in Satara, Maharashtra to a subsidiary of India infrastructure Fund II for an undisclosed amount.

Similarly, in May this year, the firm inked an agreement with JSW Energy, a firm led by Naveen's brother Sajjan Jindal, to sell its 1,000 MW power plant, at Raigarh, Chhattisgarh.

According to the deal, JSW will pay at least Rs 4,000 crore, excluding net current assets, and an additional Rs 2,500 crore if JSPL's power plant secures a long term power purchase agreement.

Likewise, in March, JSPL announced that its subsidiary Jindal Power has entered into a definitive agreement to divest 4.12% stake in Indian Energy Exchange for an undisclosed amount by month-end.