Essar embraces clean energy in green pivot

Ravi Ruia and his nephew Prashant are leading the turnaround

- Anirudh Laskar

Ravi Ruia and his nephew Prashant are leading the Essar Group’s clean energy ventures following the successful resolution of the group’s crushing $25 billion debt, the people said on condition of anonymity. In a 2 May letter to banks, the Ruias said the group is now transforming itself into a “new-age global business" with “future-centric assets".

The group, with revenues of $15 billion and assets of $8 billion, is planning to “reinvest in new-age assets", the Ruias said in the letter to the lenders, a copy of which has been reviewed by Mint.

“Having repaid about ₹2 trillion ($25 billion) to all Indian banks and financial institutions, the Essar Group is now effectively becoming debt free," Essar’s letter said, adding that the group has drawn a plan to invest in its core sectors of energy, infrastructure, logistics, metals, mining, technology, and retail.

Essar Group is also seeking to attract private equity and sovereign wealth funds specializing in ESG (environmental, social, and governance)-friendly businesses to support its investments in green energy assets, the people cited above said.

“While ongoing businesses will provide stable cash flows, our renewed focus will be to re-build assets, with strategic international partners, that are prudently financed," the group said in its letter.