Electrosteel Steels Ltd (ESL) said on Monday that the Corporate Debt Restructuring Cell of RBI has approved its proposal for its existing term loan worth Rs 6,181 crore and fresh borrowing worth Rs 1,307 crore. The CDR mechanism will have the cut- off date from March 01, 2013.
Ashutosh Agarwal, Executive Director of ESL told Business Line that the Cell sent a letter of acceptance on September 28. “ESL also requires separate working capital of Rs 1,300 crore – Rs 550 crore fund-based and Rs 750 crore non-fund-based. These are also in the process of being sanctioned,” he added.
The borrowing relates to ESL’s 2.51 MTPA integrated steel project in Jharkhand’s Bokaro district. The Rs 11,000-crore project has already seen investment of nearly Rs 10,000 crore. A clutch of 27 banks, led by SBI, are the lenders to the project.
There are three other outstanding borrowings of ESL worth Rs 611.91 crore. These, however, will remain outside the CDR package.