Mumbai (Maharashtra) [India], Apr 7 (ANI): IL&FS has sold its stake in environment business to EverEnviro Resource Management, a 100 per cent owned subsidiary of Green Growth Equity Fund (GGEF) managed by EverSource Capital.
IL&FS, as the promoter of IL&FS Environmental Infrastructure and Services Ltd (IEISL), held 97.54 per cent of equity shares. The balance 2.46 per cent was held by IL&FS Employee Welfare Trust. The entire shareholding in IEISL held by IL&FS Group has been transferred to EverEnviro Resource Management.
"The sale will reduce IL&FS overall debt by Rs 1,200 crore which is the combined debt of entities under IL&FS' environment businesses," it said in a statement issued on Wednesday.
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 crore to the IL&FS Group.
IEISL subsidiaries -- Dakshin Dilli Swachh Initiative Ltd (DDSIL), Swayam Swachatta Initiative Ltd (SSIL), RDF Power Projects Lte (RDF), East Delhi Waste Processing Company Ltd (EDWPCL) and Kanak Resources Management Ltd (KRML) -- form part of this transaction and have also been transferred to EverEnviro.
EverSource Capital manages GGEF, established with anchor investment from India's National Investment and Infrastructure Fund (NIIF) and the Department for International Development (DFID), Government of UK.
IEISL is one of India's leading integrated waste management companies present across various segments including inter alia construction and demolition, collection and transportation and waste to energy. It currently manages over 8,400 tonnes per day (TPD) 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 tonnes of solid waste.
The sale of IL&FS environment business forms part of the new board's strategy to resolve overall IL&FS Group debt as per the resolution plan approved by the National Company Law Tribunal (NCLAT). (ANI)