IL&FS sells 2 firms in energy business for Rs 77.5 cr to reduce debt

IL&FS, the beleaguered infrastructure financing and construction company, has sold two power businesses for Rs 77.5 crore, it said in a statement on Thursday.

Infrastructure Leasing & Financial Service will use money from the sale of Urjankur Warana Power and IL&FS Energy Development Company (IEDCL) to reduce debt as per a resolution framework approved by the National Company Appellate Law Tribunal (NCLAT).

IL&FS, which was taken over by the government in October 2018, has addressed debt to the tune of Rs 55,000 crore as of March, 2022. That amount comprises Rs 21,000 crore from monetisation of assets, Rs 20,000 crore of Invit and cash balances, and Rs 14,000 crore of claims filed with courts. The company has said it will address debt of Rs 61,000 crore out of the Rs 1 trillion it owes to various financial institutions.

The company said on Thursday it sold a 33.33 per cent stake in Urjankur to Shree Tatyasaheb Kore Warana Sahakari Sakhar Karkhana Ltd. Urjankur was jointly promoted by IEDCL and Urjankur Nidhi Trust, wherein IEDCL held 33.33 per cent and the rest was held by the trust.

IEDCL sold 27.75 per cent of its stake in Urjankur Nidhi Trust, where Maharashtra Energy Development Agency has a 50 per cent stake and Shree Datta Shetkari Sakhar Karkhana Ltd holds 22.25 per cent.

Following the sale of its stake in the power company and the trust, IEDCL completely exited both entities for a sum of Rs 62.5 crore.