JSPL exploring options to reduce around Rs 46,000 crore debt

Naveen Jindal-led JSPL has said it is exploring various options, including divestment, to reduce its debt of around Rs 46,000 crore.

"We will continue to reduce the (debt). Some divestment has happened. Thrust is that we completely stop the spend right now. But it will happen progressively.The earning levels are gradually increasing so we would use them to cut the debt," JSPL's Managing Director and CEO Ravi Uppal told PTI.

"Plus we will look at some other options in terms of divestment. So this would go together," he added.

Asserting that the Jindal Steel and Power Ltd's (JSPL) continuous attempt was to reduce the debt, he said: "I think it will take a little while before we reduce it (debt)."

He brushed aside media reports that JSPL diverted funds from projects for which the loans were given.

In the last few months, the company has divested some of its assets to pare debt.

Earlier, the company had 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.

Also, it had inked an agreement with JSW Energy, a firm led by Naveen's brother Sajjan Jindal, to sell the 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, JSPL had earlier 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.

JSPL had in November said that it has failed to pay Rs 15.43 crore interest on nonconvertible debentures (NCDs), which was due on October 31.