JSPL to divest coal fired power business for Rs 3,015 cr

Jindal Steel and Power Ltd (JSPL) said on Tuesday it has accepted a binding offer from Worldone Pvt Ltd to divest its 96.42 per cent stake in Jindal Power Ltd (JPL) in an all-cash offer of Rs 3,015 crore.

"The divestment is in line with JSPL's strategic objective to continuously reduce its debt, focus on its India steel business and significantly reduce its carbon footprint by almost half as part of its environmental, social and corporate governance (ESG) objectives," it said in a statement.

The divestment plan includes 3,400 MW coal fired power plants in Chhattisgarh and other non-core assets owned by JPL.

Grant Thornton acted as the transaction advisor and ran a comprehensive sale process, reaching out to national and international investors for the asset. Cyril Amarchand Mangaldas acted as JSPL's legal advisor.

JSPL's Managing Director V R Sharma said the divestment is in line with the company's ESG objectives to be among the top 10 lowest Co2 emitting steel compes of the world.

"It is yet another step towards our vision to reduce debt substantially and create a robust balance sheet for our investors and stakeholders."

Looking to the future, Sharma said JSPL will be a key growth driver in Indian steel industry and focus on undertaking expansion of Angul steel plant from 6 to 12 million tonnes per annum.

"Infrastructure spending in India is bound to grow exponentially and JSPL is fully aligned with the government's vision of achieving 300 million tonnes per annum steel production by 2030. We firmly believe in the India growth story and its potential to be an engine of global growth."

JSPL is a leading Indian infrastructure conglomerate with a presence in steel, power and mining sectors.

With an investment of 11 billion dollars (about Rs 82,368 crore) across the globe, the company is continuously scaling its capacity utilisation and efficiencies to contribute towards building a self-reliant India.

( With inputs from ANI )