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VTB group owns 40%, Ruias 25% of Numetal

TPE is a design and engineering consultant as well as an equipment supplier

Surajeet Das Gupta & Ishita Ayan Dutt  |  New Delhi\Kolkata 

VTB bank logo, VTB bank, VTB
VTB bank logo. Photo: Reuters

Numetal, the company that has bid for Essar Steel, is 40 per cent owned by Russia’s and 25 per cent by a trust where Rewant Ruia, son of Ravi Ruia, is the trustee. The balance is held by Russian engineering firm Tyazhpromexport (TPE), and a trading company.

TPE is a design and engineering consultant as well as an equipment supplier. The company, which has designed many across the world, played an active role in the modernisation of SAIL’s Bhilai and Bokaro plants.

Sources close to the development said the bids for would be opened on Wednesday. Essar Steel, which has a steelmaking capacity of 9.7 million tonnes, received only two bids on Monday, from Numetal and

The bids will be vetted by legal experts. The Ruias' problem is that according to the IBC amendment last November promoters cannot bid for stressed assets unless they pay off their dues.

The Ruias have, however, made it clear that they will not be paying the dues to make the account standard.

has no management control over Numetal. Numetal is pitted against ArcelorMittal. The LN Mittal-led company will also have to clear the eligibility test. The steelmaker has sold its stake in and has sold his personal shareholding in KazStroyServices (KSS), which owns 100 per cent in Both the transactions happened ahead of the bid.

Essar Steel will be one of the biggest debt resolution cases for lenders. The company owes banks around Rs 440 billion and was on the Reserve Bank of India’s first list of defaulting for referral under the Insolvency and Bankruptcy Code (IBC).

First Published: Wed, February 14 2018. 03:08 IST