JSPL to divest 96.42% stake in coal-fired power biz to reduce debt
COAL & MINING

JSPL to divest 96.42% stake in coal-fired power biz to reduce debt

Jindal Steel and Private Ltd (JSPL) will divest a 96.42% stake in Jindal Power Ltd (JPL) and has accepted a binding offer from Worldone Private Ltd, a company owned by the promoter group of JSPL.

The company said the equity value is an all-cash offer of Rs 3,015 crore for a 96.42% stake in JPL, including 3,400 MW coal-fired power plants in Chhattisgarh and other non-core assets owned by JPL. The long stop date for completion of the proposed sale is 12 months.

JSPL has two coal-fired power plants in Raigarh and Tamnar, totalling 3,400 MW. JPL had earlier tried to sell the units to JSW Energy, but the deal did not close.

The company told the media the divestment is in line with the company's strategic objective to reduce its debt and carbon emissions and focus steel production and double the output of its Angul steel plant to 12 million tonne per annum (mtpa). The divestment is subject to approvals, including from shareholders of JSPL, lenders of JPL and JSPL, and statutory sanctions.

JSPL's consolidated net debt stood at Rs 25,621 crore as of December 2020 compared with Rs 28,910 crore witnessed as of September 2020. The steel manufacturer aims to reduce its carbon footprint by almost 50%.

According to the JSPL, infrastructure spending in India is bound to grow exponentially, and the company is fully aligned with the Indian government's vision of achieving 300 mtpa steel production by 2030.

Image Source


Also Read: JSPL reveals roadmap for 2030

Also Read: Jindal Power hires former Coal India head as chairman

Jindal Steel and Private Ltd (JSPL) will divest a 96.42% stake in Jindal Power Ltd (JPL) and has accepted a binding offer from Worldone Private Ltd, a company owned by the promoter group of JSPL. The company said the equity value is an all-cash offer of Rs 3,015 crore for a 96.42% stake in JPL, including 3,400 MW coal-fired power plants in Chhattisgarh and other non-core assets owned by JPL. The long stop date for completion of the proposed sale is 12 months. JSPL has two coal-fired power plants in Raigarh and Tamnar, totalling 3,400 MW. JPL had earlier tried to sell the units to JSW Energy, but the deal did not close. The company told the media the divestment is in line with the company's strategic objective to reduce its debt and carbon emissions and focus steel production and double the output of its Angul steel plant to 12 million tonne per annum (mtpa). The divestment is subject to approvals, including from shareholders of JSPL, lenders of JPL and JSPL, and statutory sanctions. JSPL's consolidated net debt stood at Rs 25,621 crore as of December 2020 compared with Rs 28,910 crore witnessed as of September 2020. The steel manufacturer aims to reduce its carbon footprint by almost 50%. According to the JSPL, infrastructure spending in India is bound to grow exponentially, and the company is fully aligned with the Indian government's vision of achieving 300 mtpa steel production by 2030. Image Source Also Read: JSPL reveals roadmap for 2030 Also Read: Jindal Power hires former Coal India head as chairman

Next Story
Infrastructure Transport

Smart Border Port Keeps Nonstop China-Vietnam Trade Flowing

On a recent spring morning at Youyiguan Port, known as Friendship Pass, on the China-Vietnam border in Pingxiang city, south China's Guangxi Zhuang autonomous region, a steady stream of trucks lined up at the border crossing, ferrying tropical fruits into China and hauling machinery and electronics to Vietnam. The scene is brisk, efficient - and increasingly automated. Friendship Pass, one of the largest and most efficient land border crossings between China and Vietnam, is undergoing a high-tech overhaul. The site is being transformed into China's first cross-border smart port, with the Chi..

Next Story
Infrastructure Urban

Cortec Delivers Corrosion Protection for Military Equipment and Infra

As modern military operations demand equipment that’s ready for immediate deployment, corrosion prevention has become more critical than ever. Addressing these challenges, Cortec® Corporation—an industry leader in environmentally responsible corrosion solutions—offers its proven VpCI® (Vapor phase Corrosion Inhibitor) technology to safeguard military equipment during production, transit, and long-term storage. Corrosion poses serious risks to o perational readiness, safety, and budgets. It can lead to critical equipment failures, costly repairs, and safety hazards. Studies indicate t..

Next Story
Real Estate

Unsold Affordable Housing Drops 19% in Q1 2025: ANAROCK

India’s housing market is showing contrasting trends across budget segments. According to the latest data from ANAROCK Research, unsold affordable housing units (priced below Rs 4 million) across the top seven cities dropped by 19% year-on-year in Q1 2025, falling from approximately 140,000 units to 113,000 units. This decline is attributed to restricted new supply and sustained demand from end-users. Conversely, unsold stock in the luxury housing segment (priced above Rs 15 million) surged 24% in the same period, growing from 91,125 units to over 1.13 lakh units. The spike comes on the bac..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?