ArcelorMittal’s Essar Steel Win Spells Loss For Gujarat

ArcelorMittal’s Essar Steel Win Spells Loss For Gujarat

The Gujarat government is set to lose as much as ₹1,150 crore if the dedicated bankruptcy court upholds the committee of creditors’ recommendation to accept the resolution plan of ArcelorMittal to acquire Essar Steel Ltd, said two senior officials close to the development. These dues are classified as operational creditors and ArcelorMittal’s proposal has not made any provision for payment to such creditors, they said, requesting anonymity.

Essar Steel owes about ₹1,150 crore to a clutch of Gujarat government companies including ₹872 crore to Gujarat Energy Transmission Corp Ltd.

According to details of the resolution plan listed by the Resolution Professional on Essar Steel’s website, the dues pertain to various agencies of the Gujarat government including collector of electricity duty and state maritime regulator, sales tax department and local authorities. Read more

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