JSW Steel bags Bellary Steel assets for Rs210 crore
17 Jan 2011
Sajjan Jindal-controlled JSW Steel, the country third-largest steel producer has taken over the assets of Bellary Steel for Rs210 crore after emerging as the highest bidder for debt-ridden Bellary Steel & Alloys (BSAL).
Speaking today to television channel ET Now, JSW Steel's joint managing director MVS Seshagiri Rao said that his company has paid the entire Rs210 crore and taken possession of the land, the buildings and the branded machinery of BSAL's steel plant in Bellary.
Bangalore-based BSAL was midway through constructing an integrated five lakh tonnes per annum steel plant on a 700 acre freehold land at Bellary, when it ran into financial problems.
The consortium of lenders led by IFCI decided to sell the assets of the company under the Securitisation & Reconstruction of Financial Assets & Enforcement of Security Interest Act, which empowers banks or financial institutions to recover non-performing assets.
The assets include all the equipment, land, the buildings and plant machinery of BSAL's integrated steel plant.
The assets would compliment JSW's seven-million tonne steel plant in the Bellary-Hospet region.
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