Jindal Steel eyes Rs 20 cr saving from debt recast
(BUSINESS STANDARD: March 31, 2003)

Jindal Steel and Power (JSP), a OP Jindal Group company, has converted Rs 200 crore of debt into foreign currency loan. The target is to convert another Rs 100 crore in the next three months.

With this debt restructuring exercise, the company hopes to make a saving of Rs 20 crore in the next financial year. JSP is also planning to prepay part of its total loan in the next few months. "We are working towards it and hope to churn the present debt component to bring down the average interest cost further," said Sushil K Maroo, vice-president, finance, JSP. The present outstanding debt for the company is estimated at Rs 800 crore. With this restructuring, the company has been able to bring down the average rate of interest to about 8 percent. Maroo added that the debt restructuring exercise initiated during 2002-03 will help the company save about Rs 5 crore by the end of the year but the results will primarily show in the next year. The company has already re-paid Rs 60 crore to ICICI as part of its financial restructuring plan.

It also plans to pre-pay a substantial sum to Life Insurance Corporation (LIC), for which a proposal has already been sent. Meanwhile, Maroo said the company is looking at increasing its export business in the next financial year. It is already eyeing markets in Iran, Egypt, Bangladesh, Malaysia and Vietnam to export its rails, production of which will commence in the next few months. It is learnt that the company is holding test runs for the rails at present.