BS: JSW Steel to take over BPSL’s operations by month end: Sajjan Jindal
3 March 2019: JSW Steel hopes to take over Bhushan Power and Steel Ltd (BPSL) by this month end after successfully bidding for the stressed assets the company.
“Committee of Creditors (CoC) has cleared our bid for acquisition of BPSL. We are waiting for National Company Law Tribunal (NCLT) to approve the resolution plan. Our team is ready. Hopefully, we will take over the operation of the company by this month end,” said Sajjan Jindal, chairman of JSW Steel.
Sources said a JSW team is at BPSL to understand the operations of BPSL’s flagship project, a 3.5 million tonne steel plant in Jharsuguda in Odisha.
JSW’s first task will be to operate the plant at its approved capacity. The plant has environment clearance (EC) to produce 2.8 million tonne steel per annum (mtpa), but it operates at a level of 1.8 mtpa.
The production enhancement will require minor modifications and synchronisation of six months, sources said.
JSW will have to improve the productivity of BPSL employees and resolve logistics issues like transporting of raw material like iron ore and coal to the plant and disposing of finished products.
BPSL was put on the block by the creditors under Insolvency and Bankruptcy Code (IBC) after the Sanjay Singal-owned company’s accumulated debt mounted to Rs 47,000 crore. JSW Steel has been issued a Letter of Intent (LoI) for acquisition of the asset by the sale administrator after its revised bid of Rs 19,650-crore pipped past Tata Steel’s offer of Rs 17,000 crore.
JSW has lined up a greenfield steel project with an intended capacity of 12 million tonne and investment of Rs 55,000 crore in Odisha. The proposed plant will come on the 3000 acres acquired for the jinxed Posco project.
“We are in the process of preparing DPR (detailed project planning), pre-feasibility report for the project. We have also sought various statutory clearances such as environment clearance, forest clearance. Once we get the forest clearance, we would start work on the project,” Jindal said.
The Business Standard reported
Categories: General News, India Bankruptcy