Jindal Steel and Power Limited (JSPL), India’s leading steel and power major, has consummated sale of oxygen plant assets at Rs. 1121 core with SREI Equipment Finance Ltd.
Under the transaction, JSPL has divested its oxygen plant assets at its integrated steel plants at Raigarh and Angul. JSPL and SREI Equipment Finance have also entered into a lease back agreement of the oxygen plant assets for continued operations by JSPL for the manufacturing of steel at the respective plants.
Naushad A. Ansari, CEO, steel business, JSPL said, “The divestment of oxygen plant assets is a significant development to make JSPL an asset-light company, so as to further enhance the inherent 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 operation control,” he added.
JSPL commissioned India’s largest four MTPA blast furnaces in Q2 FY 2017-2018 to mark the completion of its six MTPA iterated steel plant at Angul. The scheduled commissioning of the basic oxygen furnace at Angul during this quarter will further strengthen the cash flow streams of the company. JSPL’s 3.6 MTPA integrated steel plant at Raigarh is amongst the most efficient steelmaking facilities in the country. Under its asset sweating roadmap, the company has successfully continued to sequentially enhance the capacity utilisation levels of its steel and power assets.
JSPL is one of India’s fastest growing and largest integrated steel manufacturers, significantly present in steel, power generation and infrastructure segments and catering to a large part of India’s domestic energy and infrastructure requirement.