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Lenders to move court against Odisha slurry pipeline sale by Srei - Report

Steel News - Published on Tue, 13 Feb 2018

Image Source: Srei
Economic Times reported that banks led by State Bank of India (SBI) plan to move court against last week's sale of a key raw material pipeline by Srei Infrastructure Fund to a consortium backed by Russian bank VTB and one of the Ruia brothers. Banks, who are already fighting a similar transaction between Srei Infrastructure and the Essar Group in 2015, claim that Srei is not the real owner of the pipeline and does not have any right to sell it to a third party.

The pipeline delivers iron ore to Essar Steel and the consortium is one of the bidders for the bankrupt steel firm.

Odisha Slurry Pipeline Infrastructure runs a 253-km pipeline supplying iron ore from mines deep in the hinterland to Essar's pellets plant in Paradip, Odisha. Its ownership has changed hands twice in the past few years. In 2015, Essar Steel sold its holding in the pipeline to Srei, a transaction which was objected to by banks who challenged it in the court.

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Posted By : Sanju Moirangthem on Tue, 13 Feb 2018
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