Mumbai: Patel Engineering Ltd will seek shareholders’ approval for the disposal of certain non-core assets of the company to generate cash and reduce debt to the extent of 1,000 crore, the firm said in filing to BSE on Friday.

Patel Engineering, an infrastructure firm, is into building bridges, dams and highways.

As of March 2014, the firm’s total consolidated debt was 4,478 crore.

Indian companies are disposing of assets that aren’t central to their main business in an effort to cut flab and use the proceeds to repay debt.

In the first four months of the current fiscal year alone, companies put more than 17,000 crore of assets on the block. Many of them are so-called non-core assets—units that aren’t vital to their main business operations and can be disposed of to raise cash when needed.

Tata Steel Ltd, Tata Power Co. Ltd, Suzlon Energy Ltd, Bharti Airtel Ltd and the GMR Group are among the companies that have either sold or initiated the process of selling non-core assets.

As of 31 March, these companies had a combined 2.4 trillion of debt on their books.

Optimism about a revival in the economy under the new government after two years of sub-5% growth, combined with an increase in the stock market that has driven up valuations, is driving up such sales, analysts said. The sales will aid companies in steamlining operations and increasing the management’s focus on their core business, apart from helping cut debt.

On Friday, Patel Engineering ended at 93.65 on BSE, up 0.4% from its previous close, while India’s benchmark stock index Sensex rose 0.6% to close at 26,626.32 points.

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