Gujarat NRE Coke to sell windmill business

Gujarat NRE Coke Ltd today said its board has approved the sale of its windmill business for a consideration of Rs218.75 crore.

"Gujarat NRE Coke Ltd has received approval from its shareholders for the sale of its 62 windmills in Gujarat for a total wind power energy production capacity of 87.5 MW," the company said in a regulatory filing.

The meeting of the board of directors of the company was held on Monday.

"The company has been successful in entering into agreements for the sale of the entire windmill business for an amount of Rs218.75 crore," it said.

The sale is subject to a complete due diligence by the buyers of the business and approval from all relevant authorities and lenders of the company, it added.

"With the expected upturn in the country's industrial scenario, we expect to ramp up our capacity utilisation in the near future," the company's chairman & MD Arun Kumar Jagatramka said.

The proceeds of the sale, he said, will help in improving the company's cash flows, thereby helping the faster revival of Gujarat NRE Coke operations.

The board the company has "approved a scheme of arrangement/compromise with its unsecured creditors...The scheme has been approved by the Board subject to the requisite approvals from the relevant statutory and regulatory authorities and sanction of the High Court at Calcutta," the filing added.