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    JSPL to reduce debt by over Rs 10,000 crore

    Synopsis

    The company's plan was stated by Naveen Jindal, chairman, at JSPL's 40th AGM in Hisar on September 27, 2019.

    ET Bureau
    KOLKATA: JSPL has set a target to reduce net debt by more than Rs 10,000 crore to bring it down to below Rs 30,000 crore. The company has also decided to generate EBITDA (Earnings Before Interest, Tax, Depreciation & Amortization) of over Rs 12,000 crore on a consolidated yearly basis over the next two years.

    The company's plan was stated by Naveen Jindal, chairman, at JSPL's 40th AGM in Hisar on September 27, 2019. "JSPL has successfully reduced net debt by more than Rs 4,000 crore in the last fiscal and will continue to work towards doubling the EBITDA in next 2-3 years," he said.

    Jindal said the company is comfortably placed in the market with its niche, value added products, despite a slowdown in the economy. JSPL would be more aggressive in marketing its products and would continue to look to divest the non-core assets, to reduce debt to the target level, he added.

    Boosted by government efforts to focus on Coal Gasification, a clean coal technology, he said, "JSPL shall restart production from its Coal Gasification based DRI plant at Angul with increase in steel demand."

    He also said, "JSPL is ready to support the government in this endeavour. India has the third largest coal reserves and we believe it can change the energy scenario world over with such innovative environment friendly technologies."

    On the government’s plan to invest Rs 100 lakh crore in the infrastructure sector, he said, ‘JSPL is delivering rails well before stipulated time. We have supplied more than 1.26 lakh tonne of rails so far and are supplying more. RVNL has also ordered for rails worth Rs 750 crore and our team is looking to fulfil the commitment before deadline.'

    Jindal said, JSPL's products, including Jindal Panther 550D TMT Rebar and prefabricated structures, could help in not only building faster but with greater strength too. Given the government’s priority for housing for all, this could prove to be a game changer for sustainable housing.

    However, availability of coal, iron ore and other raw materials remain a concern, he said while appreciating efforts of the government to ensure raw material to every sector and the recent tax cuts to bolster the manufacturing sector.


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