Naxal shadow over Essar Steel bid in Chhattisgarh

According to Chhattisgarh police's record, Naxalites had damaged the Essar steel pipeline over 20 times between 2005 and 2010

Prospective investors for Essar Steel may have to factor in the Naxal violence which has cost the company quite a bit in the past.

Essar Steel, promoted by the Ruias, was among 12 companies recommended by the Reserve Bank of India for insolvency under the Insolvency and Bankruptcy Code. A number of companies including Tata Steel and ArcelorMittal have evinced interest in Essar Steel.

Apart from the Hazira plant, Essar Steel operates a number of downstream facilities that include a beneficiation plant in Chhattisgarh.

In 2005, Essar Steel built a 267-km slurry pipeline, reportedly world's second largest, to carry iron ore in slurry