Vedanta has bid Rs 53.2 billion for Electrosteel Steels, one of the 12 cases on the Reserve Bank of India’s list of defaulting companies.
Tata Steel, which is the second highest bidder for Electrosteel, has offered Rs 20 billion less. The figures were disclosed during a hearing before the Kolkata bench of the National Company Law Tribunal (NCLT).
The total admitted claims against Electrosteel, as on March 14, 2018, were worth Rs 134 billion, according to the company’s website. The balance debt will be restructured. Vedanta’s resolution application has been submitted to the NCLT for consideration.
However, Renaissance Steel India has raised objections to the resolution plan. Renaissance Steel has challenged the decision on Vedanta’s eligibility under Section 29A of the Insolvency and Bankruptcy Code (IBC).
According to Renaissance, Konkola Copper Mines, a subsidiary of Vedanta Resources plc, was guilty of environmental pollution in Zambia, and hence eligible. Konkola Copper Mines is a connected person of Vedanta.