You are here: Home » Companies » News
Business Standard

IL&FS sells environment arm to Eversource; pares total debt by Rs 1,200 cr

Transfers 4,000 employees, including consultants, to new promoter; saves Rs 50 cr a year in the process

Topics
IL&FS case | debt resolution | IL&FS group

Jyoti Mukul  |  New Delhi 

IL&FS
The sale of environment business forms part of the new board’s strategy to resolve overall IL&FS Group debt as per the resolution plan approved by NCLAT.

IL&FS has sold its stake in the environment business held by IL&FS Environmental Infrastructure & Services Limited (IEISL) and its subsidiaries to EverEnviro Resource Management Private Limited (EverEnviro), the fully-owned arm of the Green Growth Equity Fund (GGEF), India’s leading climate fund, managed by EverSource Capital.

IL&FS, as the promoter shareholder of IEISL, held 97.54 per cent of equity shares of IEISL. The balance 2.46 per cent was held by IL&FS Employee Welfare Trust. The entire shareholding in IEISL, held by IL&FS group, has been transferred to EverEnviro.

The sale will reduce IL&FS overall debt by Rs 1,200 crore - which is the combined debt of entities under IL&FS’ environment businesses.

In addition, around 4,000 employees, including consultants, have been transferred along with the businesses, thus effectively resulting in annual savings of around Rs 50 crore to the IL&FS Group, said a company statement.

IEISL subsidiaries - Dakshin Dilli Swachh Initiative Limited (DDSIL), Swayam Swachatta Initiative Limited (SSIL), RDF Power Projects Limited (RDF), East Delhi Waste Processing Company Limited (EDWPCL) and Kanak Resources Management Limited (KRML) – form part of this transaction and have also been transferred to EverEnviro.

EverSource Capital manages GGEF, established with anchor investment from India’s National Investment and Infrastructure Fund (NIIF) and the Department for International Development (DFID), Government of UK.

IEISL is into integrated waste management present across various segments including construction and demolition, collection and transportation and waste to energy. It currently manages over 8400 tonnes per day (TPD) waste.

Its assets include an integrated waste to energy plant located at Ghazipur in Delhi, which has generated over 141 million units of green electricity by processing over 1.38 million tons of solid waste.

The sale of environment business forms part of the new board’s strategy to resolve overall debt as per the resolution plan approved by NCLAT.

With this IL&FS has addressed nearly Rs 6,400 crores of aggregate debt including Chinese Road Asset sale - Rs 2,600 crore; Gurgaon Metro Resolution - Rs 1,900 crore, NHAI settlement - Rs 693 crore ; and IEISL at 1,200 crore - since January this year

According to Parvez Umrigar, managing director and chief executive officer, EverEnviro, “This is a landmark investment for EverEnviro which will pave the way for us to become a leading pan India integrated waste management platform. We are delighted to acquire one of India’s oldest and well diversified waste management with high quality talent. Solid Waste management is an integral element of modern society and with this acquisition, Ever Enviro aims to be the leader in this segment in India.”

On this acquisition by EverEnviro, Dhanpal Jhaveri, CEO, EverSource Capital, said “Waste management is a key element of a circular economy and forms a core of our investment strategy at EverSource Capital. This acquisition accelerates our agenda of promoting and investing in clean and sustainable businesses in India so as to achieve India’s climate objectives and Sustainable Development Goals and contribute to the Government’s vision of sustainable development through schemes like Swachh Bharat Mission and Sustainable Alternative Towards Affordable Transportation (SATAT).”

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, April 07 2021. 15:11 IST
RECOMMENDED FOR YOU
.