Sajjan Jindal appears to have an advantage over N Chandrasekaran and Sanjeev Gupta in the race to acquire the bankrupt Bhushan Power & Steel. Jindal’s JSW Steel has made the highest offer for the troubled Delhi-based company, trumping Tata Steel, led by Chandrasekaran, and Liberty House, controlled by NRI billionaire Gupta.
Jindal’s Rs 19,700-crore offer, if approved by the court, will give his steel company a manufacturing presence in the eastern belt of the country, which historically has been the hub of Tata Steel through its Jamshedpur (Jharkhand) and now Kalinganagar and Dhenkanal (both based in Odisha with the latter acquired through Bhushan Steel) plants.
JSW has its manufacturing units in south, west and central parts of India, the last one gained through the acquisition of the bankrupt Monnet Ispat in July this year. Bhushan Power, which owes over Rs 47,700 crore to creditors, has a 3.5-million-tonne facility in Odisha. Besides Bhushan Power, JSW in partnership with Russia’s VTB is in the race for the debt-laden Essar Steel. Read more