JSW Steel optimistic about winning BSAL battle

Sajjan Jindal-led JSW Steel today said that it has paid Rs 210-crore to acquire the assets of debt-ridden Bellary Steel and Alloys (BSAL) and is extremely optimistic of winning the on-going battle in the Delhi High Court.

"We have already paid Rs 210-crore to acquire the assets of Bellary Steel and Alloys. There is some technical problem, but we hope it will be sorted out soon. We are working on it and will win the battle...," JSW Steel's Joint Managing Director and Group CFO Seshagiri Rao MVS told reporters after announcing the company's result here.

Sesa Goa had recently secured a stay order from the Delhi High Court against the Industrial Financial Corporation of India's decision on the Bellary Steel sell-off.

"Our dispute is against the process followed by IFCI in the bidding. We have already taken up the matter with the Delhi High Court, which stayed the sale (order)," Sesa Goa's Managing Director P K Mukherjee had then said.

"Our dispute is with the process...We were the only qualified bidder initially and declared successful bidder verbally. Our people were told to come after lunch to collect the allotment letter. When we came back after lunch, we were told that there is another bidder and that bid is only marginally higher than our price," Mukherjee had said.

Last month, a consortium of lenders led by IFCI had declared JSW Steel as the highest bidder for acquiring the assets of Bellary Steel and Alloys (BSAL), where Sesa Goa was the only other qualified contender.

While Sesa Goa's bid was at Rs 206-crore, slightly more than the reserve price of Rs 205.63-crore, JSW quoted Rs 210-crore for the assets of the Karnataka-based firm.

"Everything has been done legally and we are very clear on this (bid)," JSW Steel's Director and CEO, Vinod Nowal, said.

According to the Delhi High Court website, the next hearing is scheduled for February 22