Essar Steel’s insolvency resolutionprocess is poised at a crucial juncture with fresh bids likely to be invited for the steel company, but the Tata and Vedanta groups are unlikely to join the bidding fray.
Lakshmi Mittal might be the king of steel elsewhere but his company ArcelorMittal still needs a foothold in India.
ArcelorMIttal, which earlier this week submitted a bid to acquire Essar Steel, has said it exploring the possibility of establishing a 600 MW solar farm by utilizing the land in Karnataka originally allotted to it for a proposed $6.5 billion project to set up a 6 million tonne greenfield steel plant.
LN Mittal’s dream to have a steel facility in his home country has been an unfulfilled one. For someone who has steel plants all over the world, including in South-East Asia, Europe and the US, this has been one inexplicable vacuum in his global footprint.
The Ruias are considering bidding for Essar Steel, with the Lok Sabha passing amendments to the Insolvency and Bankruptcy Code.
Tata Steel, India’s second-largest private steelmaker, has expressed interest in bidding for debt-ridden Essar Steel, whose lenders have filed for revival of the company under the Insolvency and Bankruptcy Code
Essar Bulk Terminal Ltd (EBTL), the operator of the Hazira port terminal facility, has said that it has signed an agreement with Gujarat Maritime Board (GMB) for expanding its captive jetty by 1100 metres.
The Gujarat High Court on Monday dismissed Essar Steel’s petition against the Reserve Bank of India (RBI).
The Reserve Bank of India (RBI) has asked lenders to initiate bankruptcy proceedings against a dozen companies, including Essar Steel, Bhushan Steel Ltd, Monnet Ispat and Energy Ltd, sources with direct knowledge of the matter said.
Indian banks have asked the promoters of Essar Steel to bring in fresh equity worth Rs 2,500 crore into the company before it can go ahead with its proposal for loan restructuring.