New Delhi: Jindal Steel and Power Limited (JSPL) on Monday announced that it has made a prepayment of Rs 2,462 crore to its term lenders. This is in continuation of its long-stated financial strategy of debt reduction and building a robust balance sheet with the optimum capital mix.
JSPL has worked tirelessly with a singular focus of debt reduction of more than Rs 20,000 crores from a peak of approx. Rs 46,500 cr in the 3rd Quarter of FY 2016-17 to Rs 25,600 crore as reported in 3rd Quarter of the FY 2020-21. This reduction of Rs 2,462 crore is over and above the annual committed debt reduction in the financial year 2020-2021.
The company's production stood at 7.51 Million tonnes during the financial year ended March 31. JSPL has recently announced divestment of its thermal power business to reduce its debt further as well as to cut down on its carbon footprint by almost half.
Speaking on this development JSPL's MD Mr V R Sharma said, "The significant debt reduction is part of our long term financial strategy to create a strong balance sheet. In the coming quarters we intend to further strengthen our balance sheet and become net debt free in the near future."
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