JSW Steel Plans to Pay for BPSL before March End
Business Line reported that JSW Steel will pay INR 19,350 crore into the escrow account to be opened with Punjab National Bank on March 25 for taking
Business Line reported that JSW Steel will pay INR 19,350 crore into the escrow account to be opened with Punjab National Bank on March 25 for taking over Bhushan Power and Steel Limited. The transaction will pave the way for JSW Steel to expand its manufacturing presence in eastern India. Post acquisition, JSW Steel will have 20.7 million tonne crude steel capacity in India, surpassing Tata Steel’s 18.7 million tonne crude steel capacity in India to become second to Steel Authorities of India Limited’s officially announced post expansion crude steel capacity of 21.4 million tonne. But with commissioning of 1 million tonne capacity at Vijaynagar & 5.7 million tonnes at Dolvi, JSW Steel will cement its position as largest steel maker in India
Vijaynagar - 12.00 million tonne
Dolvi - 5.00 million tonne
Salem - 1.00 million tonne
Thelkoloi - 2.70 million tonne (2.3 million tonne as per BPSL website)
Committee of Creditors had agreed in early March to close the bankruptcy process of Bhushan Power & Steel Ltd by accepting a conditional proposal of JSW Steel. Lenders voted with 97% majority to accept INR 19,350 crore upfront payments from JSW Steel on the condition of reversing the payment in case of an adverse order from the Supreme Court. JSW Steel had tied certain conditions before releasing the funds to creditors of Bhushan Power, in part to secure indemnity in an event of unfavourable SC ruling in the case, which would then return the entire sum to JSW Steel.
According to earlier media reports, SBI will be the biggest beneficiary having IR 9,825.67 crore admitted claim, followed by PNB’s INR 4,399 crore.
BPSL established its facility in Chandigarh in 1973 to manufacture rebar and wire rod. It has 7 manufacturing facilities in India. BPSL plant in Thelkoloi Block of Sambalpur District in Odisha comprises of 8 DRI Kilns of 500 TPD, 376 MW Power Plant, Coal Washery, two CSP Plant, Blast Furnace, Coke Oven Plant, Sinter Plant, Oxygen Plant, Steel Making and Lime & Dolomite Plant, Cold Rolling Mill, Galvanizing and Galvalume.