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ArcelorMittal offers INR 4,800 crore for Essar Mahan under OTS - PFC

Power News - Published on Wed, 20 Feb 2019

Image Source: The Indian Express
Economic Times reported that steel giant ArcelorMittal has proposed a resolution offer of INR 4,800 crore to lender of stressed Essar Mahan power project, over 37 percent higher than offered by the promoter Essar Group. Essar Group has made a resolution offer of Rs 3,500 crore under one time settlement (OTS) scheme for Essar Mahan, which is a 2x600 MW coal based power plant situated in Madhya Pradesh.

Power Finance Corporation's chairman and managing director, Mr Rajeev Sharma, told reporters that "We had earlier received a resolution offer of INR 3,500 crore from the developer (Essar Group) himself for Essar Mahan under OTS scheme. But, now we have received an offer from ArcelorMittal for about INR 4,800 crore.”

Besides PFC, other lenders to Essar Mahan are ICICI Bank, which is the lead bank, Punjab National Bank, Rural Electrification Corporation. The total debt of the power plant is of INR 7,500 crore.

Source :

Posted By : Rabi Wangkhem on Wed, 20 Feb 2019
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