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JSW Steel gets Letter of Intent for Bhushan Power and Steel

IANS  |  New Delhi 

The (CoC) for and Steel has issued a Letter of Intent (LoI) to Sajjan Jindal-owned Steel, thereby declaring it a winning bidder for the bankrupt power company, sources said.

The development comes after the (NCLAT) last week turned down Tata Steel's plea to consider its bid as the "most legitimate".

People in knowledge of the developments said that Steel has accepted the bid and the resolution professional would now approach the (NCLT) for final approval on Wednesday and the procedure could conclude next month.

As per the protocol, NCLT will now have to give the stamp of approval for Steel to acquire and Steel.

JSW Steel's revised bid of Rs 19,300 crore for and Steel made it the top suitor ahead of Rs 19,000-crore bid by UK and Tata Steel's bid of nearly Rs 17,000 crore. The bankrupt company owes Rs 47,000 crore to the financial creditors.

For JSW, acquisition of Bhushan Power would allow it to retain the numero uno position in the Indian market for a long time to come with targeted capacity of 40 million tonnes by 2030.

was one of the 12 biggest defaulters identified by the (RBI) for insolvency proceedings in June 2017. (PNB) had dragged the bankrupt steelmaker for resolution under the Insolvency and Bankruptcy Code (IBC).

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, February 12 2019. 22:56 IST
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