This is said to be the biggest recovery for banks so far

40 thousand crores paid to SBI, ownership of plant at Bailadila to ArcelorMittal

Raipur, 14 December: ArcelorMittal has acquired the ownership of Essar Steel’s slurry pipeline( A slurry pipeline is a specially engineered pipeline¬†used to move ores, such as coal or iron, or mining waste, called tailings, over long distances. A mixture of the ore concentrate and water, called¬†slurry, is pumped to its destination and the water is filtered out) beneficiary plant at Bailadila by paying Rupees 40 thousand crores to State Bank of India (SBI).

On Friday, ArcelorMittal has deposited Rs 40 thousand crores in SBI’s account. ArcelorMittal will get the entire rights of this company from December 16. In the process, the bank’s debt was stuck in balance for about 863 days. For the last two and a half years, the work of Essar Steel was under the control of RBI. In the event of Essar not paying the money, legal procedures were completed.

After this, the auction process was started. In this, Mittal Steel and the group expressed their desire to take Essar’s property by making the highest bid in an open bid. On Friday 13 December, ArcelorMittal paid 40 thousand crores in SBI’s account. Essar Steel started negotiations with NMDC in Bastar between 1995 and 1997. The government process was completed in 2005 after a period of protracted negotiations. Then Essar Steel’s work could be completed. With this, Essar Steel started a beneficiary plant in Bailadila.

From this beneficiary plant with a capacity of 8 metric ton (MT) per year, about 267 km long slurry pipeline started to take the pellet plant to Visakhapatnam. This slurry pipeline is called the second largest dual pipeline in the world. Fully automatic, low cost iron and paste have been transported through this pipeline.

ArcelorMittal, the world’s largest steelmaker, on Friday paid to handle a debt-ridden company under the new Insolvency and Bankruptcy Code. The payment process has been completed almost a month after the Supreme Court ruling of November 15. This decision of the Supreme Court paved the way for Arcelor to take over Essar Steel.

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