Jindal Steel moves towards asset-light model
Amir Shaikh / 10 Oct 2017
The divestment of oxygen plant is a step towards making JSPL an asset-light company and so to enhance its inherent cost efficiency.
Jindal Steel and Power Ltd (JSPL) has sold its oxygen plant assets to SREI Equipment Finance Ltd., for consideration of Rs. 1121 crore. The divested asset is located at its integrated steel plants at Raigarh (Chhattisgarh) and Angul (Odisha). Both JSPL and SREI Equipment Finance Ltd. have also entered into leaseback agreement of the oxygen plant assets for continuing JSPL’s operation of steel manufacturing at respective plants.
This divestment is a step towards making JSPL an asset-light company, so as to enhance its inherent cost efficiency, the company said in a filing to the bourses on Monday.
Moreover, recently JSPL has commissioned India’s largest 4 MTPA blast furnace to mark the completion of its 6 MTPA integrated plant at Angul (Odisha).
Jindal Steel and Power Ltd. (JSPL) is part of O.P. Jindal group, one of the India’s largest integrated steel manufacturers, having presence in steel, power generation and infrastructure segment.
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