India’s JSW Steel has completed its takeover of debt-ridden Bhushan Power and Steel Ltd., boosting to the former’s overall output to 21.5 million mt/year, the steelmaker said March 26.
“This is an important milestone as its is the largest acquisition in the history of JSW Steel,” Sajjan Jindal, JSW Steel’s chairman said March 26 in a welcome note to employees of BPSL. “As a valued member of the JSW family, your contribution will be key in bolstering our ambitious growth plans of achieving 45 million mt/year capacity well ahead of the 2030 timeline.”
JSW Steel’s has 18 million mt/year of capacity, which will hit more than 26 million mt/year with the addition of BPSL and a doubling of the production capacity at JSW Steel’s Dolvi steel mill to 10 million mt/year.
Dolvi’s expansion is expected to be completed in the first quarter of fiscal year 2022 which ends March 31, 2022, postponed from Q4 FY 2021 due to the COVID-19 pandemic.
The takeover of BPSL, effective March 26, brings an end to JSW Steel’s plan to take over BPSL that was approved by the approved by the National Company Law Tribunal in September 2019 and by National Company Law Appellate Tribunal in February 2020.
The NCLT was created under the Companies Act of 2013 to handle corporate civil disputes arising under the act, whereas the NCLAT hears appeals against decisions of the NCLT.
Challenges to the tribunals’ approvals had delayed the implementation of JSW Steel’s resolution plan for BPSL, which ended when JSW Steel said it paid Rupees 193.5 billion ($2.66 billion) to financial creditors on March 26.
— Clement Choo, Ashima Tyagi
