Beleaguered infrastructure financier IL&FS has sold its stake in environment business – IL&FS Environmental Infrastructure & Services Limited and its subsidiaries – to EverEnviro Resource Management Private Limited, a 100% owned subsidiary of the Green Growth Equity Fund, India’s leading climate fund, managed by EverSource Capital.
IL&FS, held 97.54 per cent stake in the environment business the balance was held by IL&FS Employee Welfare Trust.
This sale will reduce overall debt by Rs 1,200 crore – which is the combined debt of entities under IL&FS’ environment businesses. In addition, around 4,000 employees, including consultants, have been transferred along with the businesses, thus effectively resulting in annual savings of around Rs 50 crores to the IL&FS Group, the company said in a press release.
With this latest sale, IL&FS has successfully addressed nearly Rs 6,400 crores of aggregate debt including the Chinese Road Asset sale worth Rs 2600 crore; Gurgaon Metro Resolution amounting to Rs 1900 crore, NHAI settlement worth Rs 693 crore, since January this year.
EverSource Capital manages Green Growth Equity Fund, established with anchor investment from India’s National Investment and Infrastructure Fund (NIIF) and the Department for International Development (DFID), Government of UK.
IL&FS Environmental Infrastructure & Services manages over 8400 tonnes per day waste. Its assets include an integrated waste to energy plant located at Ghazipur in Delhi, which has generated over 141 million units of green electricity by processing over 1.38 million tons of solid waste.
Sale of Environment business forms part of the IL&FS board’s strategy to resolve overall debt as per the resolution plan approved by NCLAT.
Source: Economic Times