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ArcelorMittal and Thriveni Earthmovers Bid for Odisha Slurry Pipeline

Steel News - Published on Mon, 02 Dec 2019

Image Source: business-standard.com
Mint reported that ArcelorMittal is facing stiff competition in its bid for Odisha Slurry Pipeline Infrastructure Ltd, an insolvent company whose single asset could cut the cost of production at Essar Steel by a fifth, as Thriveni Earthmovers Pvt Ltd has offered to pay back creditors in full, principal and interest, but over a five-year period.

As per report, ArcelorMittal has made an upfront cash offer of INR 2,200 crore for OSPIL, while Thriveni has placed a bid of INR 3,300 crore, with INR 8 crore of upfront cash and the rest in staggered payments.

OSPIL has INR 2,352 crore of principal outstanding to various classes of creditors. With accumulated interest, the outstanding liabilities are INR 3,300 crore.

OSPIL owns and operates a 253-km pipeline that connects iron ore mines in Dabuna, Odisha, to a pelletisation plant in Paradip. Essar Steel, which had commissioned the pipeline, sourced about half of its iron ore needs for its plant in Hazira, Gujarat, from Dabuna. The Paradip pellet plant converted the iron ore fines brought by the pipeline to pellets, which were then shipped to the Essar-operated port terminal in Hazira, adjacent to the steel mill.

Source :

Posted By : Rabi Wangkhem on Mon, 02 Dec 2019
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