Indian steelmaker Jindal Steel and Power Ltd (JSPL) has announced that it has completed the sale of its oxygen plant assets at its integrated steel plants at Raigarh and Angul to India-based SREI Equipment Finance Limited for a consideration of INR 11.21 billion ($171.5 million). The company has also entered into a lease-back agreement with SREI for the same oxygen plant assets in order to continue its operations at the plants.
JSPL’s CEO Naushad A. Ansari stated that the divestment of the mentioned assets is a significant development to make JSPL an asset-light company, so as to further enhance the inherent cost efficiencies, while he added that, with the lease-back agreement, JSPL has retained full operational control of the plants.