Jindal Steel & Power coal mine sale expected to reduce its debt

Company will be selling its Botswana coal assets

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Jindal Steel & Power is currently selling its coal assets located in Botswana to Maatla Energy for INR 1.070 crore, in an attempt to lower its debt for 2019's financial year, reports The Economic Times.

Chief financial officer Deepak Sogani states that ÔÇ£our target is to bring down our debt to around INR 34 thousand ÔÇô INR 35 thousand crore by the year-end. In 1Q this year, JSPL has managed to cut down debt by INR 1.5 thousand crore. Our debt levels have thus come down from INR 39.084 crore to INR 37.621 crore.ÔÇØ

The group plans to increase its steel production capacity in India up to 6.5 million tons during the current fiscal year, hoping to reach the 8 million tons mark during 2020.

During 1Q2019, JSPL suffered a consolidated net loss of INR 87 crore, versus the INR 110 crore net gain it experienced during the same period last year.