Company's debt increased basically after cancellation of coal blocks and it had to pay Rs 3,500 crore of additional levies.
New Delhi: Jindal Steel and Power Ltd, which has a consolidated debt of around Rs 46,000 crore, today said it is likely will be a 'relatively' debt-free company within five years.
"We are increasing our production, there is good demand for steel and the government has also taken a lot of initiatives to build infrastructure in the company," JSPL Chairman Naveen Jindal told reporters on the sidelines of India's National Competitiveness Forum here.
"In the next four to five years we hope to be relatively debt free company. That the debt should not be more than three times, I believe of, the EBITA of the company," he said.
The things are much better now for JSPL, Jindal said, adding, "We are able to service the debt and I hope that if the steel demand continues we will be able to overcome it. Our debt is only come down now.
Whatever was our debt in FY'16 we have reduced it in FY'17," he said. Jindal said that company's debt increased basically after cancellation of coal blocks and it had to pay Rs 3,500 crore of additional levies.
"So we had to borrow to pay our levies that is why JSPL's debt is high. Then we have been servicing the debt that we took, so it cost us more than Rs 5,000 crore," he added.
The debt is not because of some project, but due the company's cost which went up because of cancellation of coal blocks.