Lenders said the bids by both parties would have to be evaluated because there were too many conditions attached to the bids by both JSW Steel and Tata Steel.
The liquidation value for Bhushan Steel was Rs 150 billion, and it was believed that the upfront payment for the highest offer was around Rs 200 billion.
Bhushan Steel has a debt of around Rs 440 billion.
The company has a steel-making capacity of 5.6 million tonnes in Odisha. For JSW Steel, if it bags Bhushan Steel, it would mean a significant presence in the east. JSW is a strong player in both west and south. For Tata Steel, it would mean synergies with its plant in Kalinganagar. Additionally, Tata Steel has mines in Odisha and it can transport the finished product to elsewhere in the country and save on the transportation cost of raw material.
Bhushan Steel is the third stressed steel asset where lenders are in the process of evaluating bids. JSW Steel has already won Monnet Ispat & Energy, while Vedanta has emerged the highest bidder for Electrosteel Steels.