IL&FS group plans to shed 37% debt, board approves asset divestment plan

Aims to divest 25 projects in a span of 12-18 months

Faced with overleverage and tight liquidity conditions, the IL&FS group has firmed up plans to shed its debt by 37.5 per cent, or by Rs 300 billion, to Rs 500 billion by divesting 25 projects over 12-18 months. The board of directors has approved the specific asset divestment plan, the company said. Two-third of debt will be from IL&FS Transportation Network Ltd (ITNL). 

The overall debt is expected to come down to Rs 500 billion after the planned divestments, Vibhav Kapoor, chief investment officer, IL&FS, said. Out of the 25 projects identified for sale, concrete offers have already been received for