JSW Steel in talks with SBI for Stemcor bid

Nov 09 2013, 09:12 IST
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final date of submitting a binding bid for the UK-based Stemcor's India assets is November 18. final date of submitting a binding bid for the UK-based Stemcor's India assets is November 18.
SummaryTata Steel, Aditya Birla Group, Essar Steel, Bhushan Steel also in race for Stemcor India's assets.

the Chinese market while medium grade lump ore is consumed by regional sponge iron producers in India, while low grade fines are stockpiled for future conversion to pellets at BRPL.

For JSW Steel, these mines are strategically located as the company has proposed to come up with a 10 mtpa value added steel plant in West Bengal, with its joint venture Japanese partner JFE. However, so far no iron ore mine has been allocated to the company and hence it is going slow with the project.

In its annual report, Sajjan Jindal, chairman and managing director of the JSW Group had told shareholders that once iron ore sourcing is tied up for the West Bengal plant, project work will be further expedited.

While a mail sent to JSW Steel and Stemcor remained unanswered, joint managing director Sheshagiri Rao, during the company’s recently concluded second quarter results press conference had said the company is “very serious” about the deal.

In fact, most companies are vying amongst each other mainly due to Stemcor’s claim to an operational iron ore asset.

Stemcor in September had run into a legal tussle with the ICICI Bank which had appealed in the Calcutta High Court that the company should not be allowed to sell the assets as they are offered as collateral against a loan of R587 crore taken from the bank.

The case will come up for hearing on December 6.

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