NEW DELHI: Mumbai-based Essar Group claims that it has become debt-free after completing the debt repayment of $25 billion (Rs 2,00,000 crore). This claim by the conglomerate, which once was among India’s top business houses, comes as two Group companies -- Essar Ports & Terminals Ltd (EPTL) and Essar Power Ltd (EPL) -- on Monday announced concluding the $2.05 billion (Rs 16,500 cr) sale of captive ports and power assets located in Hazira and Paradip to Arcelor Mittal Nippon Steel India Limited (AM/NS).
The sale consisted of infra assets, which include a 270 MW power plant and 25 MPTA port at Hazira in Gujarat and a 12 MPTA port at Paradip, Odisha. “Essar has concluded its asset monetisation programme and completed the debt repayment of $25 billion (Rs 2L crore) effectively making the group debt-free from Indian banks and financial institutions” said Prashant Ruia, Director, Essar Capital.
Essar said it would continue to have a significant presence and substantial operating assets in all its core verticals – energy, metals & mining, infrastructure & logistics and technology & retail. The company claims it currently has revenues of $15 bl (Rs 1.2 lakh core) and asset under management of $8 billion (Rs 64,000 crore) within and outside India. It was in late August this year when Essar had announced a $ 2.4 billion (Rs 19,000 crore) deal to sell its ports business to steel magnate LN Mittal-led Arcelor Mittal Nippon Steel Ltd.
ArcelorMittal, along with Japan-based Nippon Steel, had earlier acquired Essar Steel via a corporate insolvency resolution process by paying Rs 42,000 to the lenders of erstwhile Ruias-owned firm. The Ruias had limited options but to sell its assets to pay off hefty loans it was struggling to service. Essar’s debt had ballooned from less than Rs 28,000 crore in 2009 to about Rs 1.38 lakh crore in 2017, as per reports. One of its biggest monetisation efforts includes concluding the sale of Essar Oil assets to the Russian government controlled Rosneft-led consortium for $12.9 billion in early 2018.
Out of debt
Essar concludes $2.05bn transaction of port, power infra assets with AM/NS
Claims to complete the debt repayment of $25 billion
Currently, the Group has revenues of $15 billion and AUM of $8 billion