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'Power pacts between Bhushan Steel, Bhushan Energy under discussion'

Tata Steel Ltd had won the bid to acquire debt-laden Bhushan Steel Ltd through the insolvency process

Press Trust of India  |  New Delhi 

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said on Tuesday that the existing power purchase pact between Steel, the debt-laden company which it acquired, and Energy is in under discussion.

The statement comes amid reports that has started the process of cancelling PPAs between Steel and in a bid to cut costs.

"has a contract (power purchase agreement) with another company BEL (Ltd). There are some discussions going on at this stage so nothing has happened as yet. There is discussion regarding the contract," --Steel business and (TQM)-- said.

He was speaking on the sidelines of International Conference on Minerals and mental sector organised by ITEI.

Sen further said, "Yes, the company feels that it could be little bit more economical so they are examining the contract and discussing with the owners of BEL to have more beneficial contract on both parties."

BEL is a subsidiary of Ltd.

When asked it the company has begun the process of cancelling PPA, Sen said that "I don't know whether power purchase agreement is being cancelled or not but we have a power agreement with a company that contract is under discussion."

(BNPL), a wholly-owned subsidiary of Tata Steel, had earlier successfully completed the acquisition of controlling stake of 72.65 per cent in Ltd.

had won the bid to acquire debt-laden Bhushan Steel Ltd through the insolvency process.

The bankrupt firm was among the 12 stressed assets the RBI had referred for NCLT proceedings last year.

First Published: Wed, August 29 2018. 21:15 IST