The Ruia-owned Essar Group said on Monday it has completed the sale of port and power assets in Hazira, Gujarat, and Paradip, Odisha, to Arcelor Mittal Nippon Steel India Ltd. at a price of $2.05 billion dollars (about 16,500 crowns).
With the sale, Essar completed its monetization program to become effectively debt-free.
“Essar Ports and Terminals Ltd. and Essar Power Ltd. today completed the $2.05 billion sale of Hazira and Paradip ports and assets to AM/NS,” the statement said.
The deal included infrastructure assets, including a 270 MW power plant and a 25 million ton/year port in Hazira, Gujarat, and a 12 million ton/year productive port in Paradip, Odisha.
Mr. Prashant Ruia, Director, Essar Capital, said “Essar has concluded its asset monetization programme and completed the debt repayment of $25 billion (₹2,00,000 crore) effectively making the group debt-free from Indian banks and financial institutions”
Essar continues to have a significant presence and substantial operating assets in all its core verticals – Energy, Metals & Mining, Infrastructure & Logistics, and Technology & Retail. The privately held group currently has revenues of.US$ 15 billion (~₹1.2 lakh core) and assets under management of c.US$ 8 billion (₹64,000 crores) within and outside India.
Mr Rewant Ruia, Director, Essar Ports Terminals Limited, said “In a planned and strategic manner, we have monetised assets that we built over last 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-age technologies, which will be sustainable.”
Essar is now reinvesting in our existing operations and developing new assets in India and abroad using more efficient cutting-edge, carbon-neutral new-age sustainable technologies.
The assets that Essar has monetized over the last five years have generated multiple returns. On investment, a testament to Essar’s reputation as a world-class, global, and quality asset builder across all business sectors, the statement said,
“Essar has been and will continue to be a significant player and contributor to India’s growth.” continuing to generate significant growth and revenue from international operations.