Promoters committed to bringing in Rs 500cr: JSL

Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS JSL promoters, bankers meet to outline CDR package ALSO READ See latest News about Jindal Stainles See previous management interviews See what other Experts & Brokerages are saying about Jindal Stainles JSL Stainless BSE | NSE 10/02/12 Are Mutual Funds betting on JSL Stainless?

Banks and lenders have agreed to restructure the Rs 6,000 crore debt of Jindal Stainless (JSL).

The huge debt in JSL's books is mainly because of the company's investment in a 1.6 million tonne per year stainless steel project that is currently underway in Orissa. The project, to be completed in three years, is spilt into two phases of equal capacity.

The company had sought liquidity support from banks till the project is complete. It had approached the CDR (corporate debt restructuring) cell of the Reserve Bank in August 2009, and the process (restructuring) has already been delayed twice.

Arvind Parakh, Director of Strategy & Business Development at Jindal Stainless says the 12% loan on which the entire financial closure was done, will be brought down to 8-9% on a blended basis.

Parakh says most of the lenders have agreed to convert the loans into foreign currency as low LIBOR rates will help reduce rates. "There will be at least 150-200 bps reduction in the interest cost saving once our project gets implemented."

He says the promoters of the company are committed to bringing in Rs 500 crore. "We will finalise the contours in a couple of months."

JSL is a part of the OP Jindal group. It manufactures a variety of steel products and industrial machinery. It posted a turnover of about Rs 5,300 crore in FY09.

For complete interview, watch video.