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Essar Group says it’s debt free after repaying $25 billion

Essar Steel was acquired by a joint venture of ArcelorMittal, Nippon Steel and Sumitomo Metal. (Queue)

New Delhi:

Essar Group has become debt-free, having settled the rest of its $25 billion debt following the sale of two ports and a power station to ArcelorMittal Nippon Steel Ltd (AM/NS), the group has announced today.

Essar, built by brothers Shashi and Ravi Ruia, has over the years sold some of its assets in sectors such as telecommunications, oil refining and steel to settle its $25 billion debt.

Its steel business, operated by Essar Steel, was acquired by a joint venture of ArcelorMittal and Japan’s Nippon Steel & Sumitomo Metal Corp.

Essar Ports and Terminals Ltd and Essar Power Ltd on Monday completed the $2.05 billion sale of a 270 megawatt (MW) power plant and 25 million tonnes per annum (mtpa) port at Hazira to to the west and from a port of 12 mtpa at Paradip to the east towards AM/NS.

“Essar has concluded its asset monetization program and completed the repayment of $25 billion in debt, freeing the group from the debts of Indian banks and financial institutions,” said Prashant Ruia, director of Essar Capital, in a statement. a statement.

AM/NS, which has agreed to buy infrastructure assets from Essar Group for $2.4 billion, said in a statement that the ports and power plant are captive to its operations in India and are expected to generate synergies operating for the business.

He said the acquisition of a 515 MW gas-fired power station at Hazira, a 16 mtpa deep draft terminal at Visakhapatnam in southern India and a Gandhar – Hazira transmission line will be concluded after obtaining regulatory approvals.

The acquisition of these assets will help move raw materials and finished products between the company’s manufacturing facilities in western, eastern and southern India.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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