Domestic steel and power producer, Jindal Steel and Power Ltd (JSPL) are eyeing to become a net debt-free company. The company on Monday announced that it has made a prepayment of Rs 2,462 crore to its term lenders.
The company’s production stood at 7.51 million tonnes during the financial year ended 31st March 2021. 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.
This latest of Rs 2,462 crore is over and above the annual committed debt reduction in the financial year 2020-2021.
JSPL has worked with a singular focus of debt reduction of more than Rs 20,000 crores from a peak of approximately Rs 46,500 crore in 3QFY17 to Rs 25,600 crore as reported in 3QFY21, the company said in a statement.
“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,” said JSPL’s MD V R Sharma.