You are here: Home » PTI Stories » National » News
Business Standard

JSPL sells oxygen plant assets to SREI Equipment Finance

Press Trust of India  |  New Delhi 

Jindal Steel and Power Ltd (JSPL) has sold its oxygen plant assets of Raigarh and units to SREI Equipment for Rs 1,121 crore.

"has consummated sale of oxygen plant assets at Rs 1,121 crore with SREI Equipment Ltd," the company said in a filing today.

Under the transaction, has divested its oxygen plant assets at its integrated steel plants in Raigarh in and in and received a total consideration of Rs 1,121 crore, it said.

It further said the company has entered into a leaseback agreement with SREI Equipment for continued operations of manufacturing steel at respective plants.

Under the agreement, "the owner (of oxygen plant assets) will be SREI Equipment Finance Ltd, but we will be taking care of the operations and we will pay them the lease", a company official said.

However, he did not disclose the amount at which the oxygen plant assets have been leased out.

"The divestment of oxygen plant assets is a significant development to make an asset-light company so as to further enhance the inherent cost efficiencies," said Naushad N Ansari, CEO - Steel Business, JSPL.

JSPL will continue to manage these oxygen plant capacities for its 9.6-mtpa domestic steel plants under the leaseback agreement it has entered with SREI Equipment Finance, he added.

Naveen Jindal-owned JSPL is into steel, power generation and infrastructure segments and caters to a large part of India's domestic energy and infrastructure requirements.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, October 09 2017. 14:13 IST