Jindal Steel and Power Ltd has completed the sale of oxygen plant assets to SREI Equipment Finance Ltd.
A company statement said, “Under the transaction, JSPL has divested its Oxygen Plant Assets at its integrated steel plants at Raigarh, Chhattisgarh, and Angul, Odisha, and received a total consideration of ₹1,121 crore."
JSPL and SREI Equipment Finance have also entered into a lease back agreement of the oxygen plant assets for continued operations by JSPL for manufacturing of steel at the respective plants, the statement added.
Naushad A Ansari, CEO, Steel Business, JSPL, said: “The divestment of Oxygen Plant Assets is a significant development to make JSPL an asset-light company, so as to further enhance the inherent cost efficiencies”.
“JSPL will continue to manage these cutting-edge oxygen plant capacities for its 9.6 mtpa domestic steel plants under a lease back agreement, thereby retaining full operational control,” he added.
An official statement said that JSPL commissioned a 4-mtpa blast furnace in the second quarter of financial year 2017-2018 to mark the completion of its 6 mtpa integrated steel plant at Angul, Odisha.
The company expects better cash flow streams with the scheduled commissioning of the basic oxygen furnace at Angul during the current quarter.