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Resolution Professional submits Vedanta offer for Electrosteel to NCLT

For Anil Aggarwal's Vedanta, if Goa mining ban is a worry, the bid for Electrosteel is a way to secure future growth

Press Trust of India  |  Kolkata 

Vedanta
Vedanta

The (RP) on Monday submitted the group-owned Ltd offer for bankrupt before the Kolkata bench of Tribunal (NCLT) for approval.

According to reports, Vedanta's offer is around Rs 45 - Rs 50 billion.

The (CoC) approved the offer after they met on March 29 to look into the Renaissance Steels objections to bids made by and in terms of their eligibility under Section 29 (A) of the Insolvency and Code (IBC).

The CoC, constituted in terms of the Insolvency and Code, 2016, has approved the resolution plan for the company submitted by Vedanta Limited, Electrosteel Steels had informed the bourses.

The 270-day deadline for insolvency resolution process completion will expire on April 17.

The had received bids from Vedanta, Edelweiss Alternative Asset Advisors, and

After the ban came into effect in mid-March this year following a order, the successful bid for Electrosteel Steels comes as a major boost to Vedanta as it will enable the group to foray into value-addition and steel making very soon, industry watchers had said.

Electrosteel has been setting up a 2.5 million tonnes integrated to make pig iron, billets, bars, wire rods, and ductile iron pipes near Siyaljori village, in Bokaro district of

The project got delayed but is partially operational.

Electrosteel also has iron ore linkages to supply raw materials to the project, allowing Vedanta in getting access to these reserves as well.

Vedanta, in its January conference call, had said that its iron ore licence in requires it to do value addition within the state.

In its presentation, Vedanta also talked about a 10 million tonnes per annum iron ore project in

It was in the process of setting up a one million tonnes plant to make pig iron and ductile pipes in Jharkhand, which is in a preliminary stage.

First Published: Mon, April 02 2018. 18:28 IST
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