Arcelor Mittal Nippon Steel India Limited (AM/NS) has purchased the captive ports and electricity assets owned by Essar Ports & Terminals Ltd (EPTL) and Essar Power Ltd (EPL) in Hazira and Paradip for US$2.05 billion (16,500 crore). The deal included a 270 MW power plant, two ports with a combined capacity of 25 MPTA and 12 MPTA in Gujarat and other infrastructure assets.
"Essar has finished its asset monetisation programme and completed the debt repayment of $25 billion (2,00,000 crore), effectively making the group debt-free from Indian banks and financial institutions," said Mr. Prashant Ruia, director of Essar Capital.
Essar keeps a large presence and sizable operating assets in each of its four core verticals: energy, metals & mining, infrastructure & logistics, and technology & retail. The privately held group manages assets both inside and outside of India totaling US$ 8 billion (64,00 crore) and US$ 15 billion (1.2 lakh core) respectively.
According to Mr. Rewant Ruia, Director of Essar Ports Terminals Limited, "we have monetized assets that we built over the last 30 years in a planned and strategic manner. We are currently investing in growing our existing businesses and developing new assets both abroad and in India using cutting-edge, effective, and carbon-neutral new technologies.
Essar has a reputation for creating first-rate, internationally applicable, high-quality assets across all of its business verticals, and the assets it has monetized over the previous five years have generated a multifold return on investment.
Essar continues to see considerable growth and earnings from its worldwide activities while also making a big contribution to India's growth story.