Tata Power on Tuesday said its Singapore-based subsidiary Trust Energy Resources completed the transaction for the sale of its three ships for USD 212.76 million (around Rs 1,592 crore).

"Singapore-based Trust Energy Resources Pte Ltd (TERPL), a wholly-owned subsidiary of Tata Power has announced completion of sale of its three ships -- MV Trust Agility, MV Trust Integrity and MV Trust Amity to Oldendorff Carriers GmbH & Co. KG, Germany -- for a consideration of USD 212.76 million," Tata Power said in a regulatory filing.

TERPL will now cater to the shipping requirements of the company's imported coal-based Coastal Gujarat Power Ltd (CGPL) plant at Mundra under an asset light model which will help unlock significant value and returns for the company's shareholders, the company added.

Tata Power said the sale proceeds will be used towards reducing the debt as well as to fund future growth plans.

Tata Power CEO and MD Praveer Sinha said, "The sale of our shipping assets... is in line with our long term plans to reduce debt and raise funds to invest in our future growth plans, including expanding our presence in the renewable energy business".

This is the second asset sale by Tata Power in recent months after the divestment in Cennergi in South Africa. Shares of Tata Power were trading 0.40 percent higher at Rs 50.60 apiece on BSE.

First Published:Jul 7, 2020 12:20 PM IST