Essar concludes $2 bn sale of port, infra assets to ArcelorMittal Nippon Steel

With this, Essar said, it has completed its asset monetisation programme to effectively become debt free.

“Essar has concluded its asset monetisation programme and completed the debt repayment of $25 billion (Rs 2 lakh crore) effectively making the group debt-free from Indian banks and financial institutions,” said Prashant Ruia, director, Essar Capital.

In a separate release, AM/NS India said these cash generating assets are expected to generate operational synergies for it immediately.

“Owning these strategically located assets also supports our recently announced decision to proceed with a Rs. 60,000 crore capacity expansion plan at Hazira, including the ability for AM/NS India to realise additional synergies from rising throughput at the port assets in both Gujarat and Odisha,” AM/NS India chief executive officer Dilip Oommen said.

Acquisitions of the remaining assets included in the August 2022 agreement – a 515 MW gas based power plant at Hazira, 16 MTPA all-weather, deep draft terminal at Visakhapatnam and the 100 km Gandhar – Hazira transmission line – are expected to be completed in due course once necessary regulatory approvals are received, AM/NS India said.

AM/NS India is a joint venture between ArcelorMittal and Nippon Steel, two of the world’s leading steel manufacturing organisations.

Essar said it 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 around $15 billion (Rs 1.2 lakh crore) and assets under management of close to $8 billion (Rs 64,000 crore) within and outside India.