Mumbai,  IL&FS has sold its stake in IL&FS Environmental Infrastructure & Services Limited (IEISL) and its subsidiaries to EverEnviro Resource Management Private Limited (EverEnviro), a 100 per cent owned subsidiary of the Green Growth Equity Fund (GGEF), a climate fund, managed by EverSource Capital.

This sale will reduce the overall debt of IL&FS by Rs 1,200 crore, which is the combined debt of entities under IL&FS' environment businesses, IL&FS said in a statement.

IL&FS, as the promoter shareholder of IEISL, held 97.54 per cent of equity shares of the company. 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.

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 Limited (DDSIL), Swayam Swachatta Initiative Limited (SSIL), RDF Power Projects Limited (RDF), East Delhi Waste Processing Company Limited (EDWPCL) and Kanak Resources Management Limited (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 a waste management company present across various segments including 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 tons of solid waste.

Sale of Environment business forms part of the new board's strategy to resolve overall IL&FS Group debt as per the resolution plan approved by NCLAT.

With the latest transaction IL&FS has successfully addressed nearly Rs 6,400 crore of aggregate debt since January 2021, including Chinese road asset sale for Rs 2,600 crore, Gurgaon metro resolution (Rs 1,900 crore), NHAI settlement worth Rs 693 crore.