Sajjan Jindal-led JSW Steel is close to finalising a compromise with financial creditors and completing Rs.19,700-crore takeover of debt-laden Bhushan Power & Steel.
JSW Steel’s steelmaking capacity will increase to 21.5 million tonne from 18 MT post the Rs 19,700 crore acquisition.
For this, it has got the green signal from National Company Law Appellate Tribunal.
Tata Steel had become the largest steelmaker in India with a capacity of 19.6 MT. This includes the Rs 35,200 crore worth acquisition of Bhushan Steel in May 2018.
However, the ED is investigating money laundering charges against BPSL’s former promoters. In the process, it has attached company assets worth over Rs 4,000 crore.
Moreover, large financial creditors have agreed to give JSW an assurance that they will return the money to the company.
This is, in case, ongoing matters related to BPSL in the Supreme Court have any adverse impact on it.
Further, BPSL was among the 12 large cases referred to bankruptcy courts by the Reserve Bank of India in 2017. In fact, the company owed lenders Rs 48,000 crore as per reports.
Moving forward, JSW Steel will have a capacity of 27 million tonnes a year in the 2022 financial year.
On one hand, Tata Steel aims to double its production capacity to 40 million tonne. On the other hand, JSW Steel is keeping a close eye on the 50 million tonne-mark.
Currently, JSW Steel holds the third position with an annual steel-making capacity of 18 million tonnes.
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