NCLT directs ArcelorMittal to pay Rs 1,300 cr for use of slurry pipeline

Tribunal responds to Srei Infra plea, holds charges for use of slurry pipeline for running Essar Steel as a going concern during CIRP period are insolvency resolution process costs

ArcelorMittal, which won Essar Steel after going through spate of litigations and some 865 days, was on Tuesday asked by the Ahmedabad Bench of the National Company Law Tribunal (NCLT) to pay Rs 1,300 crore to Odisha Slurry Pipeline Infrastructure (OSPIL) for using its assets.

In its 322-page order, the tribunal said the charges for the use of slurry pipeline for running Essar Steel as a going concern were corporate insolvency resolution process (CIRP) costs. The NCLT was hearing an application moved by Srei Infrastructure Finance, a financial creditor of OSPIL.

The additional cost comes 11 months after the joint