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Debt-ridden real estate firm DLF Ltd has said that it has received shareholders approval to sell its wind energy business.
The company did not give details on its wind power assets and the amount of money it expects to raise.
The sale is part of DLF's ongoing exercise to exit non-core businesses and generate cash for its core business of property development, as also to reduce debt.
DLF is in the process of reducing its mounting debt, which stood at Rs 22,725 crore as on March 31, 2012. The company had managed to reduce debt by a meagre Rs 33 crore in January-March quarter earlier this year.
The realty major has raised about Rs 1,774 crore in the last fiscal through divestments of non-core assets, including plots and IT parks. The divestment proceeds have touched Rs 4,844 crore till date.
The overall target of divestment of non-core assets of Rs 10,000 crore would be achieved in the medium term.
Analyst tracking DLF said the company could raise up to Rs 1,000 crore through sale of its wind power unit.
The company has wind-turbine generator-based powers with installed capacities of 150 MW and 11.2 MW located at Kutch (Gujarat) and Gadag (Karnataka). In a presentation to analysts after reporting its Q4 earnings, DLF had said, “These are difficult conditions and headwinds will continue. Given the inflation, we can’t be hyper optimistic. We are focussing on debt reduction by selling our non-core assets and focussing on plotted developments”.
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