We aim to bring down Jindal Steel and Power’s (JSPL) debt to below Rs 10,000 crore, VR Sharma, managing director (MD) of the company, told CNBC-TV18.

“Our aim is to bring down the overall debt level to less than Rs 10,000 crore by the end of this financial year (FY22). Therefore, I am sure with the deal (Jindal Power), it will become easier for JSPL to bring down its debt to four figures,” he said.

Jindal Steel and Power Limited (JSPL) will launch a transparent competitive bidding process for the divestment of Jindal Power (JPL). Sharma expects the process of JPL's divestment to take anywhere between 6-8 weeks.

Sharma also added that JPL’s performance has been impacted due to a shortage of coal.

“The revised offer for JPL asset from Worldone now is Rs 7,401 crore to be precise. So, it’s an open deal now, it’s an open invitation to the rest of the world that anybody who wants to take care of acquisition or wants to invest into it or if somebody wants to take over JPL from JSPL then they would be invited on the open platform,” said Sharma.

On demand, Sharma said, “Demand for construction steel especially for rebar is sluggish at the moment in the country. Post the second wave of the pandemic (COVID-19), the construction industry has not yet picked up; maybe in the next 15-20 days, the workers will come back and the construction will start.”

“However, the original equipment manufacturer (OEM), micro and small enterprises (MSE) sectors and shipbuilding industry is doing extremely well,” Sharma said.

For the entire management interview, watch the video.

(Edited by : Dipika Ghosh)