“Under the transaction, JSPL has divested its Oxygen Plant Assets at its integrated steel plants at Raigarh (Chhattisgarh) and Angul (Odisha), and received a total consideration (inclusive of taxes) of Rs 1,121 crore. JSPL and SREI Equipment Finance Ltd have also entered into a Lease Back agreement of the Oxygen Plant Assets for continued operations by JSPL for manufacturing of steel at the respective plants,” the company said in a statement.
The move would make JSPL an Asset-Light company and enhance its cost efficiencies.
“JSPL will continue to manage these cutting-edge oxygen plant capacities for its 9.6 MTPA domestic steel plants under a Lease Back agreement, thereby retaining full operational control,” Naushad A Ansari, CEO – Steel Business, JSPL said in the statement.
The company has commissioned the 4 million tonnes per annum (MTPA) blast furnace in the last quarter, which marks the completion of its 6 MTPA integrated steel plant at Angul (Odisha). It is also operating 3.6 MTPA integrated steel plant at Raigarh (Chhattisgarh).
Meanwhile, the company's long-serving managing director and group CEO Ravi Uppal announced his exit from JSPL, last month.
The debt-laden firm had defaulted in December on interest payment on non-convertible debentures.
Jindal Steel & Power Ltd is currently trading at Rs 158.1, up by 3.74% from its previous closing of Rs 152.4 on the BSE.
 "Capacity utilisation falls for RINL, JSW Steel and JSPL")