News

JSPL to sell some steel assets, enter renewables sector

Mumbai: Jindal Steel and Power Ltd (JSPL) will sell certain steel and mining assets and will expand its power business portfolio into renewable energy and transmission and distribution (T&D), said chief executive Ravi Uppal in a phone interview, hours after agreeing to sell a 1,000 megawatt (MW) power plant to JSW Energy Ltd.

Late on Tuesday night, JSW Energy had said it will buy 100% of JSPL’s 1,000MW thermal power plant in Chhattisgarh at an enterprise value of Rs.4,000 crore, which could be increased to Rs.6,500 crore if JSPL manages to secure 100% fuel supply for the plant and enters into long-term power purchase agreements (PPAs).

Uppal described debt-laden JSPL as a “growing business” and said the company was working with urgency to completely divest “certain assets within its steel and mining business” to improve its liquidity and reduce debt. He did not name the assets citing non-disclosure agreements.

JSPL wants to sell controlling interests in its Botswana coal mine in Africa and a mine owned by its Australian subsidiary Wollongong Coal Ltd as it does not want to commit further investments in “development stage” assets, Mint reported on 19 August, citing a company spokesperson.

JSPL has since 2014 evaluated options including selling its mines in Africa an