Essargroup companies on Monday completed the sale of two owned ports and a power plant to ArcelorMittal Nippon Steel India.
- The sale consisted of infrastructure assets including a 270 MW power station and a 25 MPTA port at Hazira in Gujarat; and a 12 MPTA port in Paradip, Odisha.
- With this sale, it has repaid $25 billion or ₹2 lakh crore, effectively making the group debt free from Indian banks.
Essar Ports & Terminals (EPTL) and Essar Power (EPL) on Monday completed the $2.05 billion (₹16,500 crore) sale of two closed ports and a power plant to ArcelorMittal Nippon Steel India.
The sale consisted of infrastructure assets including a 270 MW power station and a 25 MPTA port at Hazira in Gujarat; and a 12 MPTA port in Paradip, Odisha.
“Essar has completed its asset monetization program and completed the $25 billion (₹2,00,000 crore) debt service, effectively making the group debt-free from Indian banks and financial institutions,” said
The group with assets in energy, mining and more had a huge debt of around ₹ 2 lakh crore in FY17 which it lowered by monetizing its assets in the oil and steel sector.
The current infrastructure assets sold are also reserved for the steel activities. “In a planned and strategic manner, we have monetized assets that we have accumulated over the past 30 years,” he said.
The company also claimed that the assets Essar has made money from over the past five years have produced multiple return on investment.
Essar continues to have a significant presence and substantial assets in all of its core industries: energy, metals and mining, infrastructure and logistics, and technology and retail. “The privately held group currently has revenues of $15 billion (approximately £1.2 lakh crore) and assets under management of $8 billion (£64,000 crore) in India and abroad,” the company’s press release said.
“We are now reinvesting in our existing operations and building new assets both in India and abroad with more efficient, latest and carbon neutral new technologies that will be sustainable,” said Rewant Ruia.