Indian steel firms to cut Rs 35,000 cr debt between FY21, FY22: Crisil

Primary steel producers in India are expected to reduce debt by Rs 35,000 crore, between FY21 and FY22, using the higher operating profits generated for prepayment, according to Crisil.

This reduction in debt and a partial deferral of capex this fiscal will strengthen the balance sheets and credit metrics of five primary steel producers, which account for 55 per cent of domestic production.

The outstanding debt of steel makers is pegged at Rs 2.15 trillion at end of March 2020. The reduction in debt is expected to be Rs 25,000 crore in this fiscal and about Rs 10,000 crore in