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JSW Steel wants its interest to be protected while the lenders hand over the stressed Bhushan Power and Steel to it under the Insolvency and Bankruptcy Code driven process.
The company’s bid of ₹19,500 crore for Bhushan Power has already been accepted by the lenders and is waiting for the final approval at the National Company Law Appellate Tribunal for last five months.
Several banks, including Punjab National Bank and Allahabad Bank, had unearthed frauds of over ₹5,000 crore involving former BPSL promoters, who have allegedly misappropriated funds and manipulated books. JSW Steel has been seeking protection to ensure that these cases do not boomerang on them after taking over Bhushan Power and Steel.
Sajjan Jindal, Chairman, JSW Steel, said the company is not backing out of the Bhushan Power deal or reducing the bid amount but there should be some ‘security’.
The company is making enquiries and just seeking to keep ‘sanctity’ of the deal, he said after addressing the shareholder at the company’s annual general meeting on Thursday.
Earlier, answering shareholders’ questions, he said the company will invest ₹15,000 crore this fiscal in various expansion projects.
The company plans to enhance the quantum of value added product sales to 50 per cent from 20 per cent to improve realisations, he said.
JSW Steel has implemented over 100 digital technology projects and generated saving of ₹180 crore. It is anticipating additional cost saving of ₹300 crore this fiscal.
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