JSW Steel has received a Letter of Intent (LoI) from the Insolvency Resolution Professional (IRP) of Bhushan Power and Steel, declaring it the highest bidder for the stressed asset.

The letter was sent late on Tuesday, said a source close to the development.

JSW Steel has to review the approved resolution plan sent along with the letter before accepting the offer. The development takes JSW Steel closer to acquiring Bhushan Power, provided there is no arbitrary insertion of clauses by the IRP or the stressed company’s Committee of Creditors (CoC), he added.

Once JSW Steel accepts the LoI, the IRP, in consultation with the CoC, will place the resolution plan before the NCLT for final approval. The entire process is expected to be completed by the first week of April, the source said.

Last week, the NCLAT had upheld JSW Steel’s bid and turned down Tata Steel’s objections to the selection process.

Tata Steel had initially pipped JSW Steel to emerge as the highest bidder for Bhushan Power, which had defaulted on loans worth ₹47,700 crore. However, Liberty House of the UK submitted a better offer after the bidding deadline.

Tata Steel moved the NCLAT against the IRP considering a bid that was submitted after the deadline.

Meanwhile, JSW Steel revised its offer from ₹9,500 crore to ₹19,300 crore, and that offer was approved by the CoC with 97 per cent vote.

While directing the IRP to send the JSW Steel bid for approval, the appellate authority had said the NCLT should ensure that there is no discrimination between financial and operational creditors.

The case has been in the insolvency courts for the past eight months.

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