Tata Steel may bid for Essar Steel’s Hazira plant

16 October  2017

Tata Steel Ltd has expressed preliminary interest in acquiring debt-laden Essar Steel Ltd’s Hazira plant in Gujarat, according to two people aware of the talks between Tata Steel and Essar Steel executives.

While the bankruptcy resolution plan of Essar Steel has not yet been finalized, the interim resolution professional (IRP) for the steelmaker appointed by the National Company Law Tribunal (NCLT) has received initial interest from at least four potential buyers—two domestic and two foreign—the people cited above said on condition of anonymity. The IRP belongs to turnaround advisory firm Alvarez and Marsal.

Essar Steel Hazira is the country’s largest single-location flat steel plant. The complex also houses a 30 million tonne per annum (mtpa), all-weather, deep draft, dry bulk port and a 515MW natural gas-operated power plant.

Built at a total cost of more than Rs30,000 crore, Essar Steel Hazira has a steel-making capacity of 10 mtpa.

Emails sent to Tata Steel and Alvarez and Marsal remained unanswered till press time.

Source: Livemint

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