Jindal Steel and Power Ltd (JSPL) has sold its oxygen plant assets of Raigarh and Angul units to SREI Equipment Finance for Rs 1,121 crore.
"JSPL has consummated sale of oxygen plant assets at Rs 1,121 crore with SREI Equipment Finance Ltd," the company said in a BSE filing today.
Under the transaction, JSPL has divested its oxygen plant assets at its integrated steel plants in Raigarh in Chhattisgarh and Angul in Odisha and received a total consideration of Rs 1,121 crore, it said.
It further said the company has entered into a leaseback agreement with SREI Equipment Finance for continued operations of manufacturing steel at respective plants.
Under the agreement, "the owner (of oxygen plant assets) will be SREI Equipment Finance Ltd, but we will be taking care of the operations and we will pay them the lease", a company official said.
However, he did not disclose the amount at which the oxygen plant assets have been leased out.
"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," said Naushad N Ansari, CEO - Steel Business, JSPL.
JSPL will continue to manage these oxygen plant capacities for its 9.6-mtpa domestic steel plants under the leaseback agreement it has entered with SREI Equipment Finance, he added.
Naveen Jindal-owned JSPL is into steel, power generation and infrastructure segments and caters to a large part of India's domestic energy and infrastructure requirements.
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