Essar completes $2 billion sale of port assets and power infrastructure to AM/NS

Family-run Essar Ruia Group announced on Monday that it has completed the sale of captive ports and energy assets located at Hazira in Gujarat and Paradip in Odisha to Arcelor Mittal Nippon Steel India Ltd (AM/NS) for 2.05 billion USD (about Rs 16,500 crore).

With the sale, Essar completed its asset monetization program to effectively free itself of debt.

“Essar Ports & Terminals Ltd (EPTL) and Essar Power Ltd (EPL) today completed the $2.05 billion sale of captive ports and power assets located in Hazira and Paradip to AM/NS,” said he said in a statement.

The sale consisted of infra assets, including a 270 MW power plant and a 25 million tonnes per annum port in Hazira, Gujarat, and a 12 million tonnes per annum port in Paradip, Odisha.

Prashant Ruia, Director of Essar Capital, said: “Essar has concluded its asset monetization program and completed the debt repayment of $25 billion (Rs 2 lakh crore), effectively freeing the group from debt. Indian banks and financial institutions”.

Essar continues to have a significant presence and substantial operating assets in all of its major verticals – Energy, Metals & Mining, Infrastructure & Logistics, and Technology & Retail.

The private group currently has revenues of $15 billion (about Rs 1.2 lakh crore) and assets under management of $8 billion (Rs 64,000 crore) inside and outside India .

Rewant Ruia, Director of Essar Ports Terminals Ltd, said: “In a planned and strategic way, we have monetized the assets we have built over the past 30 years. We are now reinvesting in our existing operations and in building new assets, both in India and overseas, with more efficient, latest and carbon-neutral new-era technologies that will be sustainable.”

The assets Essar has monetized over the past five years have generated multiple ROI, a testament to Essar’s reputation for building world-class, world-scale, high-quality assets in all its business segments, according to the release. ”Essar has been and will continue to be a significant player and participant in India’s growth story while continuing to derive substantial growth and revenue from its international operations.” PTI ANZ ANZ BAL BAL

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